Brexit Threatens Pound’s Status as Global Currency, Surveys Says

Brexit is likely to threaten the pound’s status as a global reserve currency according to a survey of central bank money managers who say Britain’s departure from the EU will alter their views on sterling, the Financial Times reported. The pound’s history as one of the most important global currencies has meant central banks have long held assets denominated in pounds that can be sold quickly to help curb swings in their own currency’s exchange rates. But a poll by Central Banking Publications, a trade journal, suggests its status will be endangered by Brexit, with three-quarters of reserve managers predicting that central banks will collectively alter — and in all likelihood cut — their sterling holdings. More than one-third of 80 people surveyed — managers working at central banks that hold €7tn in assets — indicated that they would reduce the sterling holdings they personally control. Read more