Has Pound Sterling Dropped?
Pound Sterling is one currency that entered the ranks of the strongest currency, juxtaposed with USD, Euro and others. Pounds Sterling also entered the ranks of currencies that are active in trading and Bank International. This is probably one of the reasons many investors are transferring their assets to this British currency.
Nevertheless, like big currencies in general, these strong money has also experienced a decline in value, not least the pound sterling. The decline in the currency experienced by Pound Sterling occurred when Britain decided to get out of the EU coverage contained in the referendum Brexit. At that time the value of Poundsterling dropped to the lowest level in 30 years against the dollar.
The value of Pound Sterling fell to its lowest level since 1985 after a prediction by British Broadcasting Corp that the victory will side with supporters who want the realization of Brexit. This is also followed by the fall of stock index and bank. On June 24, 2016 the pound dropped more than 10 percent which is also the worst figure compared to a decline in 1992 which only reached 4.1 percent. According to HSBC’s Global Finance Chief, David Bloom this is a time that will always be remembered in the history of the world economy.
The Bloomberg British Pound Index that tracked the pound’s value at that time said the British pound sank 10 percent to $ 1.3319. Then followed by a decline in FTSE 100 value of 7.5 percent. Other stocks such as Standard Chartered Plc and HSBC also weakened in Asia.
The value of the pound has fluctuated since the Brexit campaign that took place in February. Whereas before dropping to the lowest level, the pound sterling touched the level of US $ 1.5 for the first time because of a survey that said 52 percent of Britons decided to keep joining the European Union.
The news of this Brexit referendum has been heard almost all over the world.Some economists have also warned the UK about what might happen if it remains to break out of the EU. Janet Yellen, as Governor of the Fed, said that Brexit is one of the reasons the US has kept interest rates for the month. A survey by Bloomberg has signaled the pound sterling will fall after the poll is over. The fall of the pound is believed to boost export performance as well as a negative impact such as raising the price of products for the citizens of England.
Brexit comes from the abbreviation of the British Exit which became a tittle referendum of UK exit opportunities from the European Union.
The occurrence of a referendum on Brexit – an EU referendum in Britain will take place on Thursday, June 23, 2016 and will legally take place 16 weeks before the referendum.
Europe after Britain left behind – Some EU critics say Britain has the potential to abandon the block that has been its sole market in the region. The UK will also choose to follow the Norwegian who has paid to remain able to join the market.
The views of economists on Brexit – Some economists believe that the UK exit from the EU will have a negative impact on the prospects for the UK economy.More than 100 economists based on polls conducted by FT, Brexit’s decision will not grow the UK economy and could lead to a dangerous economic outlook. Only 8 percent of those who think if the UK economy will improve if Brexit done.
The right to vote – In this referendum the eligible voters are British citizens, Irish, Commonwealth citizens who are 18 years old and domiciled in the UK and UK citizens living abroad less than 15 years of age.
The reason Britain came out of the EU – Britain feels sacrificing a lot of things such as employment for something that the country itself does not participate in. For example by cooperation agreement with Euro. Brexit is also predicted to be the beginning of the UK to maintain full access to the market and keep people safe. Britain also argues that if Brexit can be realized then the state will get real benefits such as budget deficit and the transaction deficit will fall 20 percent, can make its own laws, regulate immigration regulations and border policies and re-show the power among international agencies such as WHO.