Pound To Euro Exchange Rate Plunges: 9 Facts That Capture Brexit Carnage Around The World

Initial reactions suggest those experts were right.

24/06/2016 16:13

The UK's historic vote to leave the European Union has sent financial markets into chaos, as the world reacts the uncertainty of Britain's future.

After numerous economic experts warned of recession and chaos after a Brexit outcome, it seems that - at least in the very short term - their predictions have come true.

The pound dropped to a three-decade-low on Friday morning, while the FTSE 100 took such a dramatic hit the UK may have temporarily lost its place as the fifth biggest economy in the world.

These nine facts show the initial reaction from finance markets to the momentous decision:

  • 1 Not so triple A
    Ratings agency Standard and Poors, along with several others, has confirmed that the UK is likely to lose its AAA credit rating due to the risks of Brexit. The UK government will be informed 24 hours before any decision is announced.
  • 2 Down with the pound
    The pound plummeted to a low not seen since 1985.
  • 3 'Poorer than France'
    The FTSE 100 lost £122bn in value within minutes of the London Stock Exchange opening on Friday morning. This led to the UK no longer being the fifth biggest economy in the world, according to reports, dropping behind France after the massive fall.
  • 4 Recession looms
    Bloomberg via Getty Images
    The vote to leave the EU leaves Britain on the brink of a recession that "will reverberate around the world" economists have said. The Guardian reports that fears of a drop in investment and chaos on the markets could trigger another recession.
  • 5 Unhappy travellers
    Travel firm Thomas Cook suspended its online currency sales to make sure that it did not run out of cash after tourists rushed to change money.
  • 6 Euro worries
    The pound to Euro exchange rate has fallen sharply - to levels last seen in 2014 - and experts have even questioned the Euro’s very survival.
  • 7 Record dive
    The pound initially soared as Remain was predicted to win, but then saw a dive bigger than that seen on 'Black Wednesday' when the 1992 Tory government was forced to withdraw Sterling from the European exchange markets.
  • 8 Dollar drop
    Scott Olson via Getty Images
    The pound fell 18 US cents against the dollar, “easily the biggest fall in living memory” according to Reuters.
  • 9 Shockwaves around the world
    Bloomberg via Getty Images
    The effects were far beyond Europe and the US - markets in Asia were down nearly 3% and Japan halted trading as uncertainty hit.
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