Britain’s currency is permanently tarred after the UK voted to leave the European Union (EU), according to one of the bank’s foreign exchange strategists.
As a result, the pound is set to lose its prized status as a leading international safe haven currency, said Robin Winklertold.
Sterling is currently among one of the world’s top so-called reserve currencies, along with the US dollar, Japanese yen and the euro.
In a damning report sent to the bank’s clients, Mr Winklertold said: “The pound’s diminishing role in international capital flows post-Brexit should permanently reduce its reserve status.”
He added: “The pound may offer value but is increasingly irrelevant.”
Reserve currencies are held by central banks across the world for trade purposes and financial stability.
Mr Winklertold speculates that China is now moving away from the pound and into other currencies.
The forex analyst said the pound’s role in the International Monetary Fund’s index of reserve currencies has also dropped since the referendum.
Full article: ‘The pound is IRRELEVANT’ German financial giant Deutsche Bank in shocking Sterling swipe (Express)