The British pound will become “increasingly irrelevant” as a global reserve currency once the U.K. leaves the EU, new research from Deutsche Bank has claimed.
This could be harmful for the U.K. which relies on a strong reserve status, and the resultant capital inflows, to help pay down its current account deficit.
According to the study, sterling’s role in the IMF’S currency composition of official foreign exchange reserves (COFER) has fallen in recent months and is set to diminish further as Britain’s role in the global economy weakens outside of the EU.
via CNBC
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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