The pound is one of the world’s worst-performing currencies in the past year

RARELY do people compare the British pound to the Nigerian naira, Azerbaijani manat or Malawian kwacha. But these are special times. Following the Brexit vote, dumped sterling. Some are worried about the possibility of a “hard” Brexit. Others are simply baffled by the government’s xenophobic and divisive rhetoric. 

One question which people have not really explored is, what assets precisely are investors selling? After all, British stockmarkets are on the up (in pound terms, at least). And Britain’s government-bond prices are still very high (though in recent days they have fallen a little). Both of those phenomena suggest that money is flowing into British assets, not out of them. 

We cannot be sure,…Continue reading

from Business and finance


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s