Following the event of the votes to leave the European Union (EU) by the citizens of the United Kingdom (UK), which led to the resignation of its Prime Minister, David Cameron, the country’s currency, pound, fell to a 31-year low on Friday, it’s lowest since 1985.
It was gathered that the pound fell as much as 10 percent against the United States (US) dollar to touch levels last seen in 1985.
As 85.3 percent of results from the referendum trickled in, 51.6 percent, representing 14,159,480 votes showed that the UK was ready to leave, while 48.4 percent, which represents 13,268,066, voted to stay.
Reuters gathered that the decision of the UK to leave the EU project of greater unity since World War Two, may hit investment in the world’s fifth-largest economy; threaten London’s role as a global financial capital and usher in months of political uncertainty.
It was also learnt that the Pound Euro exchange rate remained around 4% lower as the European session continued on Friday and investors began to digest the repercussions of the UK’s decision to Brexit.
The United Kingdom itself could now break apart, with the leader of Scotland (which voted overwhelmingly in support of Remain) now saying a new referendum on independence from the rest of Britain was “highly likely”.
An emotional Cameron, who led the “Remain” campaign to defeat, losing the gamble he took when he called the referendum three years ago, said he would leave office by October.
“The British people have made the very clear decision to take a different path and as such I think the country requires fresh leadership to take it in this direction,” he said in a televised address outside his residence.
“I do not think it would be right for me to be the captain that steers our country to its next destination,” he added, choking back tears before walking back through 10 Downing Street’s black door with his arm around his wife Samantha.
Breaking up with the EU could cost Britain access to the EU’s trade barrier-free single market and means it must seek new trade accords with countries around the world.
Meanwhile, the Nigerian naira is expected to firm to about 420 against the British pound before the close of business on Friday.
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Source: New feed