Soros: Brexit will pound-euro parity

George Soros takes the field in the referendum of June 23 in Britain and expresses clear opionion about the scenario of a possible Brexit, convinced that the pound would lose "at least 15%, but perhaps even more 'than 20%", descending to parity with the euro. It would be a paradoxical joining the single European currency, with a devaluation with no benefit to the UK economy.

The forecast comes from the financier who in 1992 thanks to his bet on the devaluation of the British currency managed to make "substantial profits" for his hedge fund "at the expense of the Bank of England and the British Government", as noted by Soros in an editorial the 'Guardian'. "It 's almost certain that the pound would drop quickly and abruptly" in case of victory of the' Leave 'in the referendum of June 23, and it would be a 15% devaluation of the "most disruptive and more" which took place in September 1992, Soros writes which is considering the pound falling from the current $ 1.46 to "below $ 1.15," then by 25-30% below the pre-referendum range between 1.50 and $ 1.60.

"If the pound fell to this level, then ironically a pound would be worth as much as a euro, a method of 'join the euro' that no one in Britain wants", indicates Soros, however, indicating that this time the repercussions for the British economy would very different. The Bank of England will cut rates as he did so because the rates are already at minimum levels compatible with the stability of the British banking system, which is by the way another reason to worry about a Brexit. If the fall in house prices and the loss of jobs will cause a recession, as is likely, there will be little that the ECB can do.

Besides everything today "active speculative forces on the market are much larger and more powerful than ever before and will be ready to exploit any wrong move on the part of the Government or of British voters. A Brexit would make some people richer, but most of the voters very poor. "