FX.co ★ Brexit: what’s the price of independence?

In case of Brexit, the United Kingdom can bare losses assessed at GBP106 billion, that would be the result of trading relations break-down.

Odgers Berndtsoncompany calculated that nearly a quarter of all companies composing the FTSE 350index are discussing the prospects of moving the headquarters from London to the continent. According to the polling regularly held since spring of the current year, it was in May when the country firms stopped recruiting new employees, which was long before the referendum.

The largest US bank JPMorgan took a decision to reduce the staff in the United Kingdom by quarter.

About three million of citizens who reside in Great Britain, were born in the continental European Union. Two million of them are employed. Taken into account that Brexit does not mean an abrupt outgo, the interests of those people can still be under threat.

The analysts remind, that more than half of the goods are imported from the continent to Britain. In case of Brexit, the conditions of the trading agreements would allegedly become stricter, which can trigger the narrowing of the sales volumes.

Moreover, the national currency can decrease by 20%, as forecast by HSBC and the National Institute of Economic and Social Research in Great Britain. If it appears true, the British pound can fall to the pit since 1985 – USD 1.06.