Brexit Triggers Falling Pound And Collapse In The City

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The stock market has collapsed wiping billions off savings and investments while the Pound has plunged in value against other currencies as the country voted for a Brexit.

Britain is leaving the European Union after a 43-year love-hate relationship with politicians and lawmakers in Brussels.

The country has voted for Brexit 52%-48% after more than 33 million people turned out to express their opinion – a 72% turn-out.

The result has also exposed deeper rifts in the country.

All of Scotland voted to remain, while most of England and Wales went for the leave option.

This may yet see Scotland look again at independence, an act that will break up the United Kingdom.

Cameron resigns

Prime Minister David Cameron has resigned, but will stay on as a caretaker until the Tory conference in October. No doubt other high profile scalps will fall by the wayside as well.

The City had the worst day of trading ever, with the FTSE losing more than 500 points at one stage.

The top 100 companies lost more than £120 billion – money scrubbed off pensions and investments.

The Pound also collapsed by 10% against the US dollar and 6% against the euro as well as slipping against other currencies.

This leaves expats with less spending power, especially if they are on a fixed income. Many may not be able to afford to remain overseas.

Even in countries as far afield as Thailand and the Philippines, the ripples of the falling value of the Pound will be felt.

Bleak future for expats

Many expats should look at switching their cash into local currencies or US dollars as soon as they can, some financial experts suggest.

In the short term, the markets are expected to lose more value as the Bank of England steps in to try and restore order with a £250 billion emergency fund.

The country is likely to see inflation rise, imports to become more expensive, while exports become cheaper abroad.

Expats with concerns about their immigration status and healthcare costs in Europe should hold fast and not make any rash financial decisions.

Brexit is a long process and will take up to two years after Britain formally invokes Article 50 of the Treaty of Lisbon, and that decision may not come for some weeks or months yet.

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