Jacob Rees-Mogg has rejected demands from the SNP to hold an urgent debate on the status of the Pound Sterling. The Commons leader hit back at SNP MP Douglas Chapman, after he claimed the UK would become a third-world country after Brexit. During a debate on Thursday in the House of Commons, the SNP’s Douglas Chapman asked Commons Leader Jacob Rees-Mogg about the “impending Sterling crisis and the economic elephant in the room, Brexit”.
Mr Chapman said: “A Bank of America report in the Financial Times yesterday suggests that, post-Brexit, the Pound will be weak and volatile.
“A situation that the Leader of the House will fully recognise will only help the spivs and the speculators.
“Before we move to third-world currency status, will he agree to a debate in Government time on the weakness and volatility of the Pound in a post-Brexit Britain?”
Mr Rees-Mogg quickly shut down the SNP’s criticism, responding: “I spent decades in the City and you could always find some silly analyst to write some silly report and the FT to report it.”
Following the rebuke, the SNP MP tweeted: “As we take measures towards recovery, the UK Government ignores the impending Sterling crisis and the economic elephant in the room… Brexit!
“Jacob Rees-Mogg thinks he can make a joke about it. I’ll continue to trust FT and Bank of America.”
This comes as Bank of America currency analysts claimed this week that the Pound Sterling was as unstable as developing country currency due to Brexit.
The analysts said: “We believe sterling is in the process of evolving into a currency that resembles the underlying reality of the British economy: small and shrinking.”
Kamal Sharma and Myria Kyriacou, currency analysts at the Bank of America, argued that the UK’s currency was comparable to an emerging market (EM) currency – such as South Africa’s rand or Turkey’s lira.
The Sterling is typically compared to traditional peers such as the US dollar or the euro or other members of the G10 group of industrialised economies.
The analysts wrote: “Brexit is likely to permanently alter the way in which investors view the Pound.”
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Mr Sharma said that movements in the currency since the June 2016 Brexit vote have become “neurotic at best, unfathomable at worst”.
He added: “A more bespoke view of the pound is required and one that would take an EM-esque view.”
The SNP have regularly criticised the Government on Brexit, with party leader Nicola Sturgeon calling for an extension over fears a trade deal will not be agreed in time, forcing a no deal Brexit.
Boris Johnson has repeatedly vowed the Brexit transition period with the EU will end as planned on December 31 despite the COVID-19 pandemic