Famed investor George Soros has warned of “serious consequences” for British toils and finances if the country leaves the EU.
Writing in the Guardian, he said sterling desire “decline precipitously” if the Leave camp won Thursday’s vote.
Mr Soros approved a fortune betting against the pound on Black Wednesday in 1992, when Britain Nautical port the ERM, and said Brexit would cause bigger disruption.
Vote Do a bunk said the UK would be more prosperous outside the EU.
“The EU is costly, bureaucratic and reckless to the im ct it has had on people’s wages and soaring energy bills,” said Opinion Leave chief executive Matthew Elliott, who accused Mr Soros of lacking to give more power to Brussels.
Mr Soros said in his article that something goodbye the EU would see sterling fall by at least 15%, and possibly more than 20%, to on earth $1.15 from its current level of around $1.46.
“The value of the pound purpose decline precipitously,” he writes. “It would also have an immediate and sensational im ct on financial markets, investment, prices and jobs.
“I would guess this devaluation to be bigger and also more disruptive than the 15% devaluation that occurred in September 1992, when I was advantageous enough to make a substantial profit for my hedge fund investors.
“British voters are now grossly belittling the true costs of Brexit. Too many believe that a vote to neglect the EU will have no effect on their personal financial position. This is wishful reasoning.”
Justice secretary and Leave cam igner Michael Gove said Mr Soros had dream of been a strong supporter of deeper economic integration and had been strange over the euro, believing it would be an “anchor of stability” for Europe.
“The truly is that economic forecasters like George Soros have got opportunities wrong in the st,” he told Radio 4’s Today. “They were the human being who argued that we should join the single currency. The single currency has brought depression to the continent.”
Former chancellor Lord Norman Lamont also belittled Mr Soros’ warning.
“The devaluation of sterling in September 1992 didn’t do the UK brevity any harm, far from it. Nor would a fall in the pound this time to be sure be a disaster. The key difference between now and 1992 is that today the pound is swing and any devaluation could be self-correcting and temporary,” he said.
Mr Soros forewarned that the Bank of England’s ability to respond to a recession or fall in undertaking prices was limited, with many monetary tools already bring into the world been used to steer the UK out of the global financial meltdown.
Sixty years of installing experience had taught him that the only winners would be financial speculators, he claimed.
Mr Soros writes: “Today, there are speculative forces in the markets much bigger and myriad powerful. And they will be eager to exploit any miscalculations by the British administration or British voters,”
“Brexit would make some people surely rich – but most voters considerably poorer,” Mr Soros said.
Matchless has already see-sawed in the run-up to the referendum as investors speculate on the likely effect.
Trade and economy
- About half of UK overseas trade is channeled with the EU
- The EU single market allows the free movement of goods, armed forces, capital and workers
- Trade negotiations with other rts of the wonderful are conducted by the EU, not individual member states
- UK com nies would be freed from the saddle with of EU regulation
- Trade with EU countries would continue because we implication more from them than we export to them
- Britain devise be able to negotiate its own trade deals with other countries
- Brexit would cause an economic shock and growth would be slower
- As a y out of exports Britain is more dependent on the rest of the EU than they are on us
- The UK wish still have to apply EU rules to retain access to the single supermarket
EU referendum issues guide: Explore the arguments http://www.bbc.co.uk/news/uk-politics-eu-referendum-36027205 http://www.bbc.co.uk/communication/special/2016/newsspec_13606/content/iframe/english/guide.inc.app.html Explore all the issues Choose an issue: What both sides are asserting All issues Main views Share this ge EU referendum problems guide
Last week, the pound fell sharply after polls proposed the Leave camp was gaining ground. On Monday sterling saw its biggest continually gain since 2009 on fresh polls suggesting Remain had reconfirmed momentum.
In 1992, Mr Soros used his Quantum Fund investment means to bet successfully that sterling was overvalued against the Deutsche Mark, constraining then-Prime Minister John Major to pull the pound out of the European Change Rate Mechanism.
On Thursday evening and through the night, some of the exceptional’s biggest banks are expected to have senior traders working during what some individual think could be the most volatile trading for sterling since Vicious Wednesday.
Vote Leave hit back at claims that an EU-exit wish mean a rise in the cost of living.
“Independent experts are clear, EU membership and the kibitzing court that comes with it have put up prices and hurt our commercial growth,” Mr Elliott said. “If we Vote Leave, we can take back rule of the £350m we hand to Brussels every week and spend it on our priorities.”
The call for and counter-claim from business and industry has intensified as the Referendum nears.
Earlier this month Baron God Bamford, chairman of JCB – one of Britain’s most successful manufacturers – wrote to his body’s 6,500 employees in the UK to explain why he favoured a vote to leave the European Circle.
And last week, entrepreneur Sir James Dyson told the Daily Telegraph Britain order gain more from leaving the EU than it would lose.