Virgin Group’s Richard Branson Says No-Deal Brexit Will ‘Collapse’ British Pound
The founder of VC firm Virgin Group Richard Branson has said that a hard Brexit will plummet the British pound and turn out devastating for many Virgin companies.
Talking to the BBC in an interview on July 11, Branson said that the pound was at $1.53 at the time of the Brexit referendum in June 2016, and is now at $1.23. The businessman added that a hard Brexit will “collapse” the pound to parity with the dollar.
In fact, historical price data from XE.com shows that the pound was trading at $1.47 on June 23, 2016 — the day of the referendum — and is trading at $1.25 as of press time.
Branson also said that a hard Brexit will be devastating for many subsidiaries of Virgin Group, which operate in the United Kingdom but pay their costs in dollars.
The United Kingdom European Union membership referendum, also known as the Brexit referendum, took place on June 23, 2016. During it, the majority of the participants voted in favor of the UK leaving the EU.
Since June 2016, the UK has been in talks with the EU about the particular terms of the withdrawal.
The current deadline for the UK Parliament to decide whether to ratify an exit treaty or leave the EU without a deal is October 31, 2019.