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Cancellation of vote leads to another pound's dramatic decline
Cancellation of vote leads to another pound's dramatic decline

The political problems, accompanying the British pound since the decision to leave the European Union, do not allow the currency to rebound. Another reason, which led to the pound's collapse, was cancellation of the parliamentary vote on the proposed bill on the UK exit from the EU.

The pound will continue to weaken until representatives of the legislative and the executive branches reach consensus. Internal political differences have an adverse impact on the value of any currency. Although the market was ready for the delay of the vote, its results were considered to be an important political indicator and could provide substantial support to the national currency. However, the situation is clearly quite different. The vote has been abolished; the disagreement within the government of the country has reached its peak; and the Prime Minister of the country cannot influence the course of events. While the parties were protecting their own interests, the pound updated its low a few times, dropping to the lowest levels since the spring of 2017.

The British currency continued its declining following the speech of Prime Minister Theresa May in Parliament and the official announcement of the vote's cancellation. The value of the pound against the US dollar fell to 1.2558 (for a moment, it even hit 1.2514 dollars per pound), the lowest value for the British currency in the last 20 months.

Published: 2018-12-20 21:56:03 UTC
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