The British pound will become “increasingly irrelevant” as a global reserve currency once the U.K. leaves the EU, new research from Deutsche Bank has claimed.
This could be harmful for the U.K. which relies on a strong reserve status, and the resultant capital inflows, to help pay down its current account deficit.
According to the study, sterling’s role in the IMF’S currency composition of official foreign exchange reserves (COFER) has fallen in recent months and is set to diminish further as Britain’s role in the global economy weakens outside of the EU.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.