Video Duration 23 minutes 45 seconds
From: Inside Story

What will be the fallout after sharp drop in sterling?

The British pound crashes to an all-time low against the US dollar.

The British pound is struggling to hold value against the United States dollar after hitting an all-time low.

The fall is raising concerns about the United Kingdom’s economy and its appeal to international investors.

The new British government unveiled major tax cuts based on borrowed money, and many are concerned about the amount that is needed.

That has led to days of volatility in the value of sterling and undermined its status as a reserve currency.

What is the fallout on an already struggling economy, both in the UK and outside?

Presenter: Hazem Sika

Guests:

Vicky Pryce – Chief economic adviser at the Centre for Economics and Business Research

Jonathan Lis – Political commentator

Brian Lucey – Professor of international finance and commodities at Trinity Business School