Brexit shook the position of the British pound on the international currency market
Preparation for Brexit (the UK's exit from the European Union, abbreviated from English: Britain + exit) led to a number of concerns accompanied by a decline in quotes.
Experts predicted that the pound to dollar exchange rate would decrease significantly. These forecasts came true, as confirmed by the statistics of the Central Bank of the United Kingdom after each government decision related to leaving the European Union. At the same time, international financial experts predict that by 2030 the UK's GDP level will fall by almost four percent, and the pound sterling exchange rate will drop by 20%.
Disappointing forecasts
It is important to recall that in the summer of 2016, a referendum was held in England on the issue of the country's withdrawal from EU membership. The majority of UK citizens believed that the best decision would be to declare Brexit. But the concerns associated with it led to consequences, including: depreciation of the national currency against the euro and dollar; decline in production; departure of a large number of European companies from the country.
The situation with England's exit from the European Union is being examined by many influential research centers in the country. Representatives of the National Institute of Economic and Social Research presented a detailed report forecasting the economic consequences for the country of leaving the EU.
In addition, the Institute for Fiscal Studies presented data according to which preparation for Brexit led to a decrease in investment volume and a contraction of the English economy. According to the organization's experts, the choice in favor of the UK leaving the European Union could lead to a doubling of the country's national debt.
Careful approach
Such economic factors, as well as disappointing expert forecasts, could serve as grounds for an even greater decline in the quotes of the GBP-USD currency pair. Therefore, Ukrainians will need to approach the choice of currency for filling their own foreign exchange portfolio with particular care, so as not to lose their finances in the long term from the completion of the Brexit procedure by the United Kingdom.