What is Brexit what effect?


Brexit Understanding

Brexit Britain stands out and shorten later for Brexit. It's such an incident some time ago made by Greece under Grexit (Greek exit) shortcut. Brexit is a speech that Britain said it would withdraw / exit from the European Union or not holding a vote (referendum) conducted by British citizens and 18 citizens of the Commonwealth.
About Brexit and influence

Brexit referendum has now become a very important thing for forex traders, especially those dealing with the GBP currency (pound). There will be a vote / referendum on Thursday, June 23 local time where there will be the announcement in the United Kingdom are still joined the EU or out of it.

At first, the promise of British Prime Minister David Cameron to hold a referendum if it wins the general election in 2015 when replying to the House of Representatives that the United Kingdom do not have voting rights in the European Union since 1975. At the time, Cameron said, "The time has come for citizens Britons to take voting rights. this is the time to put the finishing touches to the European Union Affairs in British politics. "

A citizen of the United Kingdom and Ireland and more than 18 other citizen of the Commonwealth who are members of Britain is ready to make a decision whether the United Kingdom still included within the EU or leave it on 23 June.

Brexit is a political agenda and have an impact on European financial markets at a later date. In January, David Cameron tried to make a deal with the EU leaders to change Britain's membership of the organization's position. He said that a fair deal is if you want to stay included the United Kingdom within the European Union, the United Kingdom must obtain a "special" of the 28 other member states. Where it will make the British voting rights to consider other Member States, such as high immigration levels and provide Britain to control the development of their own business in all aspects.

Analysts and economists pranks a little bit of the contents of the agreement, where the agreement will make the difference that is not better than what Cameron promised a referendum.

The main points of the agreement:

-Immigrant welfare payments: Cameron said it would cut benefits for workers from the EU value when you get a job in the UK and could be the number of people arriving in the UK in large numbers to stop. And the newcomers did not get a tax credit claims and other welfare benefits.
Maintaining Pound: Cameron said that Britain would not join the euro. It also ensures that other European countries will not distinguish English because it uses a different currency. Every British currency is witnessing rescue European countries that have problems will soon be replace with another currency.
-Children allowance: The migrant workers are still supporting the child to his home country, where the costs of the benefits derived from the standard cost of living in the country of origin and not from the United Kingdom.
-The protection of the financial services industry is controlled in the UK, based in London fully by the British themselves, so that Europe does not need to intervene in all financial matters in England: London industry.
-Business Administration alone: ​​the commitment the first time that Britain is not a state of union with the members of the European countries. Cameroon wants to publish regulations that ensure there will not be any interference from outside the United Kingdom for a work that does not. Therefore, the United Kingdom able to run any of their own business.

Most British citizens want out of the European Union, but said half want to keep joined together with the European Union in terms of results the day before the referendum is still balanced. England made many demands of the European Union is too heavy for the scholarship. Membership fees and billions of pounds deposited annually, at least the right to control the border area, and have made a lot of number of immigrants coming to the United Kingdom that Britain should discourse about their exit from the EU. It is certainly inconsistent with the rules used by the EU member states, such as EU citizens do not need to use a Visa to go and live in other European countries. In addition, the United Kingdom want to be independent and self-contained, where he also rejected the establishment of a joint state-Khattab "United States of Europe."

In addition to some of the factors that cause Britons want to leave the EU, but there are also factors that actually benefit in the United Kingdom to remain in the EU.

David Cameron declared prime minister of Great Britain, he wants Britain to remain with the European Union, provided that the request immediately and agree that students be accepted by the other Member States of the European Union. In addition to the work, the Scottish National Party, Plaid tear Liberal Democrats also support the British to come on board. On the other hand, Barack Obama, Britain also want to stay with the European Union, such as France and Germany.

British goods sales to European Union countries is very easy, and the influx of immigrants in large numbers of people, most of them young people who want to work in the UK can be a strong foundation for economic growth is an important factor in the United Kingdom to remain registered in the European Union. Besides the development of the English language in the eyes of the world it is considered safer in the 28 Member states other than when walking alone is an important factor for Inggirs to stay afloat.

Brexit effect on the economy is huge. Where if England still belong to the European Union business cycle it becomes much easier. Transfer funds, and immigrants and production from the United Kingdom to the European country not be a problem and is not twisted.
If the impact of Britain from the European Union

In addition to providing pounds animation effect Sauvignon with high volatility, the trend is very wrong. According to an analysis of the major banks, if Britain out of the European Union is the worst effects GBP for:

Goldman Sachs: the pound is likely to lose 20% of its current value. Even likely to deteriorate until the 1:20 position against the dollar if the negative sentiment also exacerbate the result of the referendum. Obstruction of the flow of investment funds in the United Kingdom to become one factor.

Bank of England: In the last meeting in early February will conclude fears Brexit burden of pounds in the future. Investors are now better monitor the referendum results and ignore the other key factors. He announced the weakness of the pound, which occurred before the result of the referendum because of the increase to avoid risky assets and move into safe-haven such as gold or currency safe-haven assets.

Nomura also took voice. He warned that Brexit could push the UK entered recession. At the same time, UBS estimated that the UK will lose 0.6 to 2.8% of gross domestic product (GDP).

The three major banks such as JP Morgan, Deutsche Bank, HSBC also it would move their headquarters if Britain really Dairi European Union. It certainly will give effect to the termination of employment, high unemployment rates and financial losses in the United Kingdom. Over a longer period, Citibank expects that the UK will lose 75,000 jobs if completely left out of the European Union.

On the one hand, this could just be the big banks move to intimidate the masses, saying it was using the English language as a cornerstone of expansion in Europe, and can be disrupted if its occurring Brexit. It should be noted that London is the world center for foreign exchange trading, where 40% of the world's transactions done. Britain is also a center for commodities trading and derivatives. Thus, the threat comes from the United Kingdom could be a threat only yes. Compared with that, the accounts above this open Europe, where the impact will depend on the last Brexit deal more sense.

But on the other hand, the important opinion of the banking sector in the United Kingdom, the financial sector is the main engine of the economy. About 8 per cent of gross domestic product in the United Kingdom come from the financial sector, the sector also absorbs about 3.4 percent of the workforce in the United Kingdom.

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