At its lowest level in 31 years yesterday the British pound sank. The British currency has absorbed much of the impact that generated the output of the United Kingdom of the European U. (Brexit). The pound fell 1.99% on the day and was quoted at US $ 1.30. So, slumped to its lowest level since June 27, 1985, ie 31 years. In turn, against the euro it fell 1.31% and traded at 1.17 euros (see B 7).
With this new fall, the pound has lost 13% from the levels showing prior to the referendum on the output of the block is approved, when it reached its highest value in the year day.
the fall of the pound accelerated after certain units of insurance companies suspend their operations in the market UK commercial real estate in order to prevent further withdrawals by investors. There is concern that investors withdraw in mass commercial property sector and that would generate more pressure on the currency.
Enhance credit
Given the fears generated by the Brexit, the Bank of England reported yesterday that will lower the capital reserve requirements to local banks in order to have more funds for loans. Thus, entities such as Lloyds Bank, Royal Bank of Scotland (RBS), Barclays, HSBC and Santander UK, among others, will benefit from this measure.
In its biannual report on financial stability, the Bank of England he stressed that the effects of Brexit could materialize soon.
the company agreed to reduce from 0.5% to 0%, with immediate effect, the “countercyclical capital buffer reserve” which requires banks, situation that will free 5,700 million pounds that will increase the lending capacity to 150 billion pounds and stimulate the economy.
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