The Bank of England is expected to ease policy in response to the crisis. REUTERS/Toby Melville/File Photo
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Sterling's plunge since Britain voted to leave the European Union was the biggest in more than 40 years, but its boost to U.K. exports may well be far less than after similar tumbles in 1992 and 2008 .A falling pound does not automatically lead to a one-for-one boost to U.K. exports.Sterling fell around 18 percent on a trade-weighted basis and as much as 30 percent against the dollar in the six months after Britain was ejected from the Exchange Rate Mechanism on Sept. 16, 1992, known as Black Wednesday.Exports rose to 239 billion pounds in 1997 from 149 billion in 1992, according to Britain's Office for National Statistics, an increase of 53 percent. The economy grew by 15.5 percent to 1.28 trillion pounds.Britain recorded a trade surplus in the three years to 1997, albeit no more than 0.5 percent of GDP in each year, but rare surpluses nonetheless. No one knows what Britain's post-Brexit trade deal with the EU – where 40 percent of U.K. exports go – will look like.
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