The energy crisis threatens the pound sterling with parity with the dollar

2 September, 2022
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The energy crisis threatens the pound sterling with parity with the dollar

Investment banks expect the pound to fall to record lows against the dollar over the next year, as the prospects of a British recession mount.

The currency of the United Kingdom has already recorded its worst monthly performance since the Brexit vote, as it fell by about 5 percent last August, while expectations indicate that the pound may continue to decline soon, approaching parity with the dollar, and this would raise the cost of imports, and increase Inflation is severely affected by rising energy prices.

The pound has fallen by about 14 percent since the beginning of this year so far, to reach the level of $ 1.15. The investment bank, "Capital Economics", expects the pound to fall to its lowest historical level at the level of $ 1.05 by mid-2023, while "Nomura Bank" expects that The pound will touch $1.06 at the end of 2023, and the Bank of Canada expects it to reach $1.07 around the same time. 


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