Officials spark concern over sterling

Earlier this month industry officials sparked concern over sterling, stating that the UK’s currency was finished and worthless. This came after the pound crashed to its lowest levels since 2001 earlier this month, sending it crashing against to dollar and bringing it increasingly closer to parity with the euro.

Investors have been stating that ’sterling is finished’. One financial expert stated: ‘I would urge you to sell any sterling you might have.’ He added: ‘It’s finished. I hate to say it but I would not put any money in the UK.’ Following the crash the pound went into reverse against all sixteen of the actively traded worldwide currencies.

In the meantime the Bank of England has been given the go ahead to print more money and increase monetary supplied it this will help to kick start the financial sector and improve the economy. However, this is a move that has received mixed reactions, as some think that this could make the situation even worse.

The weakness of the pound is also expected to affect travelling as the year goes on, and many households will struggle to go abroad because their spending power will be greatly reduced because of how weak the pound is against currencies such as the dollar and the euro.