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book will go to dollar parity



The pound could fall to the same value as the dollar if Britain left the EU without agreement, warned British billionaire Sir Richard Branson.

The boss of Virgin said that collapse without agreement could leave Britain "on the brink of bankruptcy", causing heavy losses to its UK companies and forcing them to transfer their investments outside the UK.

"The pound was $ 1.53 when the referendum was held. The pound today is at $ 1.22, $ 1.23, and the pound will collapse at par with the dollar if there is a difficult Brexit, "Branson told the BBC .

"This will obviously allow us to spend a lot less money in Britain and just devote all our energy to other countries.

His comments come after several days of sterling's decline against the dollar, as warning signs emerge about the poor health of the British economy and fear a tough Brexit led by Boris Johnson, widely expected to become the next British Prime Minister.

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Branson said all the costs of his businesses were in dollars at Virgin Atlantic. It cost about 100 million pounds a year to cover the same expenses when the pound plunged after the European referendum, he said.

He warned that Virgin's air cargo between Europe and the United States would suffer, "that would therefore represent an additional £ 100 million."

Branson also called the UK rail franchise system "a mess" and made it "difficult to be an entrepreneur" because he suggested that Virgin Trains will only manage part of the main west coast line after a fight with officials.

A government spokesman told the BBC that other companies "clearly see an entrepreneurial capacity" on the British railways.

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Virgin Trains. Photo: Press Association


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