Soros warns Sterling could "decline precipitously"

Respected global investor George Soros warns of "dramatic" consequences if the UK votes to leave the EU.

George Soros – one of the world’s most influential investors - has warned a vote to leave the EU would have “an immediate and dramatic impact” on markets, jobs and prices.

The founder of hedge fund Soros Fund Management today published a comment warning that the British pound would slump and that ‘every household’ would be impacted if the UK votes to leave the EU.

UK voters go to the polls on Thursday 23 June 2016 for the first vote on EU membership since 1975.

In a statement published in The Guardian newspaper, Soros wrote: “Too many believe that a vote to leave the EU will have no effect on their personal financial position. This is wishful thinking.”

Multi-billionaire Soros said it is “reasonable to assume” that Sterling would fall from its present level of $1.46 to below $1.15 – the equivalent value of one Euro.

Soros cited recent reports from the Bank of England, Institute for Fiscal Studies and the International Monetary Fund which collectively estimate an income loss of some £3,000 - £5,000 per household, per year in the event of Brexit.

Michael Baxter, an analyst at stockbroker The Share Centre echoed Soros’ comments in a report released today.

Baxter said: “The biggest hit will be on sterling. It seems probably that companies which rely on exporting to the EU will be adversely affected by Brexit, but so might companies which target a domestic market but rely on foreign workers.

“If the UK votes to remain, I believe there will be a sense of relief among the markets, which will be reflected in rising stock values.”