Economics
Banks Sit on FX Markets Sideline Ahead of Brexit, Says Carney
BOE Governor spoke before lawmakers in London just weeks before Britain is planned to leave the EU
This article is for subscribers only.
Britain’s biggest banks are trimming their exposure to currency markets as Brexit nears, according to Bank of England Governor Mark Carney.
Banks are making similar preparations to those seen ahead of the 2016 referendum, which was followed by a slump in the pound after the surprise result. “Our supervisors, in advance, had made sure they didn’t have big open foreign exchange positions,” he told the U.K. Parliament’s Treasury Select Committee. “They were neutral. And, the major banks in the U.K. today are neutral.”