Almost 52 percent of voters of a referendum in the United Kingdom want the country to leave the European Union; and as a result, the value of the British Pound has dropped greater than nine percent overnight to its lowest level in almost 31 years.
A pound can now be purchased for as low as $1.32 — the lowest price since September of 1985.
Breaking News: United Kingdom Votes to Leave European Union
In a close vote, Scotland, London and the majority of Northern Ireland were amongst the supporters who voted for the United Kingdom to remain in the European Union; while many of the voters from Wales and the remainder of England were opposed.
David Cameron announced moments ago that he will resign as prime minister of the United Kingdom by this coming autumn, saying that the country “needed fresh leadership.”
There has been a lot of fear and panic which is currently sweeping the world — including plenty of speculation from pundits in the mainstream media — but as investors are turning to the United States dollar and the Japanese Yen for save havens, the United Kingdom suddenly became more of a bargain destination.
Additionally, the price of oil dipped sharply on the news, which could potentially mean lower fuel prices for both ground and air transportation.
The separation of the United Kingdom from the European Union will take approximately two full years to complete, if not longer. Other than the financial volatility in the near term — markets around the world are sharply lower at the moment — changes will be slow in coming.
In the meantime — if you are not a resident of the United Kingdom or of a country whose currency is tied somehow to the British Pound — you might actually be able to take advantage of lower prices for products and services within the United Kingdom; and airfares and gasoline prices could eventually become less expensive for you as well.
What is currently unfolding will continue to be interesting as the day progresses. In the meantime, the current discussion by members of the forums of InsideFlyer is found here, if you want to join in.
Photograph ©2008 by Brian Cohen.