Government figures deliberately promoting the no-deal Brexit risk are allowing traders to profit off the collapse of the pound, the former chairman of Goldman Sachs’ Asset Management Sir Jim O’Neill has said.
Boris Johnson’s uncompromising line towards a hard exit from the European Union has pushed the pound to historic lows this week.
Indeed, only the Madagascan Ariary performed worse on Monday as sterling slipped into free-fall.
But far from being a catastrophe for high-rolling bankers, the collapse has been described as a “free lunch” for hedge funds and currency traders who are trading off the poor performance.
Baron O’Neill, who advised David Cameron’s government, said that his former colleagues in the industry saw the push to a no-deal Brexit as a “chance to make some money.”
Talking to the BBC Radio 4 World at One programme he said that UK government figures “deliberately promoting the no-deal Brexit risk” were allowing traders to benefit.
“I’m pretty sure that a lot of big foreign exchange and hedge fund type people are… probably looking at what’s being said coming out the UK as almost close to a free lunch.
“The world I was in a lot of them are saying thank goodness for Boris, he’s giving us a chance to make some money.”