How is the Euro News After Brexit Law?
How the Euro News After Brexit Act – As is known if lately is busy there is rumors Brexit Act. Brexit Act, contains about the decision of UK exit from the European Union. the decision, based on the results of the referendum on 23 June 2016 a go. Brexit itself is an acronym of Britain exid. The acronym Brexit is similar to Grexit. Grexit is an acronym of Gree Exit. Grexit itself was popular when Greece was hit by political and economic problems, then also out of membership of the European Union.
UK Out of the EU (Brexit)
The reason Britain came out of the European Union itself because the majority of the British people, wanting the UK out of the European Union. Precisely about 52% of people want the UK out of the European Union. Even then, there were about 30 million Englishmen who voted. Can also be said 71.8% of people from the total British people, participate in the vote. In addition since 1975 during the first Brexit referendum, the British did not have voting rights in the European Union. Besides that high level of immigration, making the UK want to control the development of its own business in all aspects. That is the main reason the UK wants to get out of the EU.
After the Brexit Act, the British economy itself initially experienced a shock. Even the value of pounds itself also had weakened. The exchange rate of the British pound sterling itself, continues to move to the lowest level. But over time, it looks like England can survive the initial shock. But Brexit Act is not only influential to the pound, but also affect the EURO. Given that the Euro is the official currency of the EU and the UK was previously also a member of the European Union.
How to Euro News After Brexit Act
EURO is different from other world currencies. In EURO there is no single economic factor. So the health or economic growth of the EURO, is based on the conditions of 17 EU member states as a whole. Even the different conditions of the two countries could have an effect on the value of EURO. We take for example, Germany experienced strong growth, on the other hand Spain experienced a deficit. Then the value of EURO, will be influenced by the performance of both countries. This tek differs considerably from what is happening today. When the English decide Brexit from the European Union, it will affect the EURO.
Please note, that the UK has not held a referendum only EURO and GBP has gone down. This can be seen from the fall of GBP which is the British national currency to $ 1.35. It could even be lower. On the other hand, EURO and most of the EUROPE currencies also show significant declines in most currency pairs. Brexit impacts the unpredictability of the EURO currency exchange rate and is at the heart of the problem for traders. In addition, brexit also resulted in European companies must lose.
The reason for the revaluation of their investment in the UK. Especially with pounds predicted to depreciate, then the profit earned if exchanged EURO will be less. Even because of this brexit, the value of EURO will continue to be at a low level. While the market participation itself, it seems not ready to face the weakening of EURO. Although this brexit effect on the weakening of the movement of EURO, but this will only happen temporarily. You could say it will only happen in the beginning only. This is because, although the EURO’s movement is weakening after the brexit, the increase in volatility is not bad.
However Brexit remains undesirable for the majority of countries. This is because, Brexit will not only affect the exchange rate or the movement of EURO only. But with the Brexit, could also have an impact on the economy of the European Union.The Brexit effect in the European union economy is more pronounced in terms of financial markets. With a referendum in 2016 yesterday alone, european stocks have plummeted by as much as 24%.
Especially if the UK really come out, of course the stock price of the european countries will experience chaos. Britain itself intends to start brexit process by the end of March 2017. It means the UK is expected to be officially discharged from the European Union in the summer of 2019. This is because to really get out of uni europe takes about 2 years.
But this also depends on the agreement reached in the negotiations between the UK and the European Union. As we know to get out of the EU or do Brexit, the UK must seek approval from other European countries. This refers to Article 50 of the Lisbon treaty which gives time to both parties (England and EU).