Friday-24 JUNE 2016-The world is in shock and the tears clearly reflected in the capital markets as it woke up to news that Britain exited the European Union. David Cameroon resigned Friday morning after more than 15 million people (52 percent) voted to leave the Union after 43 years of membership.
The reality is that Britain is gone from the Union and British officials in Brussels are clearing their desk. The British pounds plunged on the results to levels not seen since 1980s. The impact left its ripples also on Gold prices with largest daily gain recorded as shocked investors bailed. In Asia, it was also bad news for the markets. Oil prices was not spared as it fell sharply too. The European Central Bank have consequently activated its rescue buttons, saying early Friday that it is closely monitoring financial markets after European stocks SXXP, dropped -6.7% and triggered investors flight to safe spaces.
The consequences and the impact will be felt everywhere. One thing everyone agrees with is that there is going to be recession in the UK that will have very serious consequences for the rest of the world. Jobs will be lost and for millions of Nigerians leaving in the UK-it means uncertain status, job losses and discrimination given the number Brits out of jobs and for Nigeria in particular it’s a loss of one the country’s main backers on continental issues in the EU, remittances could slow as a result and while Britain adjust, trade with Nigeria could falter. The uncertainty of what lies ahead is palpable. Analysts say it will not all be palpable news though because of Nigeria’s recent steps to correct it’s forex market anomalies with a new rule that set it on the right path. Many scared investors may begin to reconsider Nigeria for it’s more appealing market place.
World leaders have reacted with caution and subdued in their assumptions of what to expect next. US Presidential candidate hailed the decision as a ‘great thing’. “I said this was going to happen,” he told the press in Scotland. Some Europe watchers say the Brexit vote as a proof that Trump could win the US general election.
China says it respects the process of Britain’s referendum and will work with both the British government and European Union. “We must face up to the fact of the European Union without the United Kingdom, and the United Kingdom leaving Europe,” a spokeswoman for China foreign ministry, Hua Chunying said.
Scottish First Minister Nicola Sturgeon said Scotland contributed significantly to the Remain vote across the UK and Scottish people “see their future as part of EM”
Angela Merkel, the German Chancellor called it an important day for European. but we “need to remain calm and controlled.”
UK exit means there are 27 countries left. It will take the UK at least 2 years to complete its exit