UK creates history: Brexit's a reality

As the referendum of the United Kingdom's membership of the European Union gets voted in favor of the exit, David Cameron, British PM announces his resignation. He is to leave the office by September 2016. As financial markets across the globe plunge down, the currency markets will be the worse affected.

UK creates history as the voters vote to leave the 43 year old membership with EU. The momentous decision saw 48 per cent against 52 per cent in favour of Brexit. British PM David Cameron has put in his resignation and he feels that UK can do with fresh leadership though he will try to keep the ship steady till his successor steps in.
The sterling lost heavily to the dollar at $1.39 dropping 8 per cent even as the pound hit a 30-year low. This exit is to impact British economy which in turn will have ripple effects across the globe. Though the central bankers are calming the situation and panic, they are of the view that it is not going to impact the country's economy as much but the monetary currency value might get affected.
Should the United Kingdom remain a member of the European Union or leave the European Union?
'Remain' a member of the European Union- 48.1% (1,61,41,241)
'Leave' the European Union-  51.9% (1,74,10,742)
Financial Market's
UK's pound hits 30-year low and FTSE 100 drops 8.7pc following British vote to leave EU. Though the Indian market recovered during the day after opening at 1000 points lower, Sensex plummets 604.51 points to end at 26,397.71; Nifty nosedives 181.85 points to 8,088.60. Global equity and currency markets crashed as Britain voted for leaving the European Union.
1: The benchmark Sensex plummets by 604.51 points to close at 26,397.71 points and Nifty 181.85 points to close at 8,088.60.
2: The RBI fixed the reference rate of the rupee at 68.0144 against the U.S. dollar and 75.1015 for the euro. According to an RBI statement, the exchange rates for the pound and the yen against the rupee were quoted at 92.9553 and 66.45 per 100 yens, respectively, based on reference rates for the dollar and cross-currency quotes at noon.
3: There was a crash in global equities after the referendum result indicated Britain would leave the European Union, triggering all-round selling, dragging down the key indices from their key levels. Asian market investors were the first to recover from the shock after the result.
4: Japanese shares led a slump in regional stock markets. The Nikkei Stock Average NIK, -7.92% closed down 7.9%, its steepest one-day loss for five years. Though yen and gold jumped higher, but Japanese shares led a slump in regional stock markets. The Nikkei Stock Average NIK, -7.92% closed down 7.9%, its steepest one-day loss for five years.
5: In China, the mainland Shanghai Composite was down 1.3% to 2,853.98.
Financial institution
1: In the meantime, Bank of England and ECB promised to protect the market from Brexit panic. According to media reports, Mark Carney, the governor of the Bank of England, says that the central bank is "well prepared" for the Brexit scenario.
Bank of England is prepared to provide 250 billion pounds to support the markets in England, as the pound continues to fall.
2: Raghuram Rajan, Governor, Reserve Bank of India said that RBI would provide liquidity to allow adjustments in the local markets. Rajan assured that RBI is in conversation with other authorities to mitigate the shock. Rajan feels that India's strong fundamentals would help it to remain largely immune from the shock.
Political reaction
1: Outgoing Prime Minister David Cameron has said it was up to the new prime minister - to be chosen by the fall - to trigger the legal procedures for Britain's exit from the EU.
2: United Kingdom Independent Party's member Nigel Farage announced the day as Independence day of UK, calling it as a sovereign state.
3: Boris Johnson, former Mayor of London makes a victory speech reassuring people concerned about the process of Brexit and telling them that nothing will change in the short term.

Add new comment