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Here’s Why the UK May Struggle to Save the Pound in Financial Markets

  • IMF data shows £108 billion in UK reserves at end of August
  • Analyst says intervention would work just for ‘a few minutes’

The UK’s foreign currency holdings are a fraction of the huge stockpiles built up by some of its peers, making unilateral intervention in the market to prop up the plunging pound a tall order for UK policymakers.

The UK had $108 billion in foreign currency reserves at the end of August, according to data from the International Monetary Fund. Japan, which intervened to support its currency last week, had $1.17 trillion, while Switzerland had $886 billion at the end of July.