CNN: The British government throws out the gambling version of the fiscal plan. The pound may collapse in Korea

China Well -off. September 27th. The old Malaysia British government has decided to implement the largest tax reduction measures in 50 years. At the same time, it borrowed tens of billions of dollars to subsidize the energy cost of soaring in winter this winter. This is a gambling that caused shock waves in the financial market.

British pound against the US dollar exchange rate trend

CNN in the United States CNN reported that since the Treasury Minister Kwasi Kwarteng officially announced the plan on Friday, the British exchange rate has fallen by 5%, making its total decline so far this year to date. 21%. In contrast, the exchange rate of the euro against the US dollar at the same time fell by about 15%.

The turmoil did not end. Investors are competing to sell British government bonds because they are worried about the additional £ 72 billion ($ 77 billion) borrowing in April. In the past two trading days, the yield of 5 -year bonds that are opposite to the price trend jumped from about 3.6% to more than 4.4%. In this specific corner of the financial field, this is a astronomical number jumper, and usually only one records one one. A small part of the change.

In an emergency statement, the Bank of England stated that it "is closely paying close attention to the development of the financial market," and the British Treasury said that the government's financial sustainability plan will be announced later this year.

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