According to Brett Chulu, the immediate impact of Brexit has come by way of the depreciation of the British pound (GBP) against the dollar.
Chulu argues that most local projects funded by the Department for International Development Fund (DFID), the agency of the United Kingdom government that manages development aid, are budgeted in the GBP currency.
Operationally, local non-governmental organisations (NGOs) use the United States dollar, adding that the GBP has been one of the most stable currencies in the world.
“It made economic sense from an operational risk viewpoint for local NGOs on long-term DFID-funded projects to maintain GBP budgets,” he maintains.
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