There has been CHAOS on the late-night currency markets this evening after Prime Minister Theresa May’s Brexit plan speech leaked to the media.
Shortly after 11.30pm, there were calls for the Bank of England to make an emergency intervention when the Pound dropped to 84p, and many analysts feel that it could drop even further in the next three days.
Herschell Pfund is a lead analyst at city brokerage Crinkle Sachs, and he told our Chief Reporter that this could be ‘just the beginning of the Brexit effect.’
He added: ‘This was the steepest drop in the value of Pound Sterling since the EU Referendum in June 2016, and on Tuesday morning the people of Britain are going to wake up to some awful price increases.’
’16p has been wiped off the value of the Pound, and this means that stores such as Poundland are going to be left with a huge bill to reprogram all of their cash registers and IT systems.’
‘The new £2 coins will also need to be melted down and remoulded so that the correct value of £1.68 is clearly visible to consumers and businesses. All of the ‘Leave’ voters probably didn’t think of this when they marked their polling papers last year.’
During her speech, it is now widely known that Mrs May will confirm that the United Kingdom is to leave the single market, but in an attempt to reassure the markets the Department for Brexit has already issued a press release to say that there are ‘concrete plans in place’ to deal with any short-term hardship that this may cause.
The statement read: ‘This government recognises that leaving the single market will initially have an adverse effect on the economy, and so this is why we have plans in place to create our own double market to compete with Europe.’
‘This means that all over the world, big businesses will be able to choose between their single market and our own double market, and it is clear that ours will have something unique to offer – there will be two of them.’
‘We pioneered the whole concept of getting ‘two for the price of one.’