Brexit is an abbreviation for “British exit,” referring to the U.K.’s decision in a June 23, 2016 referendum to leave the European Union (EU). The process of Britain staying or not staying in the EU has been entertaining to say the least. Former Prime Minister David Cameron, who campaigned for Britain to remain in the EU, announced his resignation the following day. Then Theresa May, who replaced Cameron, stepped down in June after facing severe pressure to resign.
It’s been pretty quiet since June, maybe because the new Brexit deadline is late October 31, 2019. However, Richard Branson, the billionaire had something to say about Brexit today.
Branson told the BBC that a hard Brexit would be “devastating” for Virgin and would lead the group to invest outside the U.K. Virgin Atlantic would lose $125 million (£100 million) of air freight contracts from Europe, after having already seen its costs rise by $125 million (£100 million) after the pound slumped in value following the 2016 referendum.
“The pound was at $1.53 when the referendum took place. The pound today it is at $1.22, $1.23, and the pound will collapse to parity with the dollar if there is a hard Brexit,” said Branson.
Branson’s comments came as the British currency plunged to a two-year low of $1.24 against the dollar earlier this week. The pound has fallen in recent months over concerns about the health of the U.K. economy and the prospect that Boris Johnson, who has argued for no-deal Brexit, will become the U.K.’s next prime minister.
I personally can’t fathom parity with the inevitable fall in the US dollar, but anything is possible in this day and age.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.