The British Pound lost value against major currencies, including the Turkish Lira, yesterday as three new polls suggested that Brits will vote to leave Europe when they take to the polls on June 23 for the in-out referendum.
The financial and other media saw this as a sign of certain doom especially as the three surveys showed a lead for the ‘Leave’ campaign.
International currency investors who are in the main driven by ‘greed and fear’ adjusted their positions sending the Pound down in value.
The last time the currency markets reacted so much to the BREXIT issue was back in February this year
Then the Pound fell to 1.40 USD. Yesterday it settled at around 1.44 USD.
Meanwhile the Turkish Lira traded at 4.20 TL to the Pound yesterday. Last February it traded at 4.12 TL.
The Euro has also suffered because of the news with the financial markets hedging their bets that an exit could be bad for the EU economy too.
What is BREXIT?
The British media have coined the phrase for the possible British Exit from the EU as “BREXIT”, similar to the threat of the Greek exit or “GREXIT” from the EU that was so prevelant last year.
Registered voters will be able to vote in the referendum on 23 June.
BREXIT Fears Bad For Holiday Spending Power
The weak Pound may be positive for exporters who will be able to sell their products for less abroad, but holiday makers will have less bang for their Pound when they venture abroad for their holidays.
This is in stark contrast to the 2015 season when the Pound was enjoying near record high values against many currencies such as the Euro and Turkish Lira, something that made the relevant holiday destinations even better value and a holiday abroad affordable.