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Wednesday, May 3, 2017

After Brexit, Cracks Start to Show in The Pound

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There have been fears the Bank of England might have to defend the pound in international markets as its value plunged following the U.K.’s vote to leave the EU. Now cracks are appearing in the currency at home – literally.

A new one-pound coin that entered circulation at the end of March has encountered production problems. U.K. media report that thousands of the new coins have developed cracks and warping.

The coin, designed to be harder to fake, has twelve sides on a gold-colored outer ring surrounding a silver-colored inner disc. Some of the coins have missing middles. Cynics might see an irresistible metaphor for the decline in centrist politics in the U.K.

This isn’t the first post-Brexit problem with the pound at home. Sections of the public already had a beef with the Bank of England over a new five-pound note: it is made of a tear resistant polymer that was found to contain traces of animal fat mainly from cows. Vegetarians and some Hindus, for whom cows are sacred, protested the materials, but the central bank ultimately decided to retain the note.

It will be hoping problems with the pound don’t keep gaining currency.

May 03, 2017 at 08:12PM

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from Paul J. Davies

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