Member Article

Pound strengthens as Scotland rejects independence

It has been announced that Scotland has voted against independence from the United Kingdom.

On the back of this, the pound sterling has hit a two-year high against the euro and a two-week high against the US dollar, as Scotland voted against independence in a referendum.

The pound had fallen to a low of $1.60.7 during the campaign.

Royal Bank of Scotland had warned it would move its headquarters from Edinburgh in the event of a Yes vote, which would have cost it millions of pounds in the short term.

Market analysts had warned that a Yes vote could have taken up to 10% off sterling’s value and wiped billions of pounds from share prices.

The FTSE 100 is also forecast to rebound by more than 100 points following the No vote in Scotland’s independence referendum.

Brenda Kelly from IG Index said: “Investors in these firms will be relieved that management will be able to devote their time to business performance, rather than fretting about contract changes or headquarter moves.”

“There is still uncertainty, primarily over the new changes to voting on English issues, but these are of importance primarily to politicians and less so to markets,” she added.

John Cridland, CBI Director-General, said: “Business has always believed that the Union is best for creating jobs, raising growth and improving living standards, and welcomes that the people of Scotland want to play an integral role in this internationally successful partnership.

“As the debate now moves to the question of further devolution, it is important that it does not undermine the strength of the single internal market and it is in the best interests of citizens living in England, Wales and Northern Ireland, as well as those in Scotland.

“Now is also the time to rebuild relationships outside the UK to reassure international investors and other partners that we will emerge stronger and more confident in the months and years ahead.”

Deputy Prime Minister Nick Clegg said: “A vote against independence was clearly not a vote against change and we must now deliver on time and in full the radical package of newly devolved powers to Scotland.

“At the same time, this referendum north of the border has led to demand for constitutional reform across the United Kingdom as people south of the border also want more control and freedom in their own hands rather than power being hoarded in Westminster.

“So this referendum marks not only a new chapter for Scotland within the UK but also wider constitutional reform across the Union.”

This was posted in Bdaily's Members' News section by Clare Burnett .