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Sep 2020

Brexit - The Future Of The Euro And The Future Of The Pound

The Brexit Future, the Brexit scheme has been a very interesting piece of work in the last year and this is largely due to the European Union and the Bank of England's failure to really solve any serious issues that are faced with the post-referendum United Kingdom economy. The Brexit scheme has been in place for just over two weeks now and despite some initial concerns that it might not work effectively enough to pull the UK out of its post-referendum rut, things have started to look a lot more positive for the British economy. Many economists agree that the economic conditions in the United Kingdom are starting to look a lot better now than they were a few months ago and this can be seen with the latest employment figures released just before Christmas. These figures also suggest that there is optimism surrounding the British economy and that many people believe that things are going to start to pick up from the bottom soon.

This is largely due to the fact that the Bank of England has taken a positive stance with regards to the situation and has even announced that it is planning on raising interest rates in order to try and stimulate the economy further. The increase in the base rate will hopefully mean that more money is being injected into the economy and this is one of the major drivers of optimism in the British economy right now. Even though there is a lot of negativity surrounding the whole thing, the Brexit scheme has certainly helped clear away some of the uncertainty surrounding the post-referendum United Kingdom economy. It is important to note that there is still a lot of uncertainty surrounding the future of the euro and the whole system of international finance in general so it helps if the United Kingdom can quickly figure out a plan B or C in relation to the potential effects of the Brexit scheme on the euro. In other words, the Bank of England has done a lot to help the situation by simply printing more money to help out the economy in the post BREXIT world.

Money is being printed and issued in great numbers right now, which means that there are going to be great levels of buy-in for the British pound in the markets as well as among major European currencies. If you think about it, the pound is basically a currency that is based on a very weak economic foundation - meaning that it hasn't even really recovered from the global recession which followed the last financial crisis in Europe many years ago. This means that a major influx of cash into the economy is necessary in order to get the economy going again - and this is actually what the Brexit scheme is doing. It is providing the UK with the much-needed stimulus needed to kick start an economy that has been battered by the recession.