The British Pound has had a major descent in the last couple of months, and with the new week starting, Scottish Parliament are throwing around a potential a new Second Scottish Referendum, which has only furthered complicated matters. Through a report in The Times, there are murmurings that the somewhat controversial SNP leader Nicola Sturgeon could use the whole Brexit process to start the campaign for a second referendum.
Rumour has it, Sturgeon wanted to call independence referendum in March and have it collide with Article 50. However, noted analyst Johnny Bo Jakobsen said that only if the UK parts company with the EU would a referendum become realistically possible. However, there is more than one way to look at the situation. As The Times states, this could have a huge impact on the EU-leaving process, as in a way it could turn into a big constitutional issue. Current UK PM Theresa May still has the option to reject the demand and issued a warning that she would not risk causing the segregation of the United Kingdom on what could, later on, be classified as a “flip of a coin”.
The thing with Brexit is that it just creates a positive terrain for Scottish people – if the Nationalists lose their vote, it’s almost guaranteed that there will be a second referendum. But then, there are other consequences, as the Pound is expected to descend even more, and it implies that the stage is being set for a battle for the British Pound, in a very tight race against Dollar and Euro on the other side. Recently, the LMAX Exchange Research & Analytics issued the briefing that this progress will need to be watched closely. Altogether, the impact is that many are reconsidering the expectations of the Bank of England’s follow-up move which might not be the hike that some are predicting.
There are economists that monitor this potential collapse of UK’s monetary funds, and the tension rises each day just because of the Brexit situation. Of course, we all expect the Bank of England to make a move that will turn everything around. And, we all know that their next move is critical for the economic future of the UK.
Market analyst at Money Europe Ranko Berich talks a different story. He says there isn’t a single thing to worry about at the moment. Of course, we have seen the Pound rise and fall head to head with Dollar and other major currencies, but the situation with Brexit is not critical just yet, we just know it will happen someday in the near or far future. At the moment, Brexit does not have much of an impact on Pound, or let us be more precise – it doesn’t decline Pound as it used to in the beginning. But there is a thing that would really get us to the fall of Pound – the Scottish referendum.
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Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.