Asia-based investment house, “Mitsui Holdings”, has apparently told clients looking for an explanation for sterling’s seemingly unstoppable decline on the world’s foreign exchange markets to look no further than the Bank of England’s quantitative easing program.
Although the Bank’s Monetary Policy Committee (MPC) voted to suspend the program at its last meeting, it still had enough time to wreak havoc with the value of what was once the world’s reserve currency.
Analysts at “Mitsui Holdings” believe that the policy has met with muted success since access to credit is still proving difficult for individuals and businesses alike but, because of the extra 200 billion pounds that has found its way into the market, sterling has become a “risk currency” subject to wild fluctuations and may, in time, become the focus for speculators in the much the same way as has the euro.
A source close to “Mitsui Holdings” said that the firm has recently had significantly more contact than usual with its UK-based clients many of whom have expressed concern over the dire state of the economy and its effect on their wealth.
The source said that “Mitsui Holdings” had set up a WealthLine service which its UK clients could call for advice on protecting the purchasing power of their savings but the firm’s standing advice to purchase precious metals and commodity currencies was still very relevant.
