The Danish third-party logistics provider is emptying its bank accounts of British pounds to minimize currency risks associated with the United Kingdom’s potential exit from the European Union, according to a report from Reuters news service.
DSV A/S is selling off British pounds to minimize currency risks associated with the United Kingdom’s potential exit from the European Union, according to a report from Reuters news service.
Jens Bjorn Andersen, chief executive of the Danish third-party logistics provider, told Reuters in a phone interview the company is hoping Britain will vote to remain in the EU, but is making preparations in the event the voters decide the country would be better off on its own. UK officials are scheduled to vote on the so-called “Brexit” at a referendum on June 23.
“We are currently in the process of emptying bank accounts of pounds to minimize currency risk,” Andersen said.
The International Monetary Fund said in a recent report a decision by the UK to leave the EU could have a “negative and substantial” effects on the economies of both the UK and the other EU member states.
The IMF said a Brexit vote would result in a “protracted period of heightened uncertainty,” the negative effects of which could include a sharp rise in interest rates, financial market volatility and damage to London’s status as a global finance hub. Its comments echoed those of several financial analysts, including Fitch Ratings and the Bank of England.
The Brexit is not without supporters, however, such as Employment Minister Priti Patel, member of Parliament for the Witham constituency in Essex, who accused the IMF of “bullying” UK voters.
“The IMF warned Britain it was playing with fire when it set out a plan to deal with the deficit. Now our economy is stronger than nearly every other major economy,” Patel said in a statement from the advocacy group Vote Leave. “Today, the IMF is talking down Britain because we want to take back control from Brussels. They were wrong then and they are wrong now.”
“The EU-funded IMF should not interfere in our democratic debate a week before polling day,” she added. “It appears the Chancellor is cashing in favors to Ms. Lagarde in order to encourage the IMF to bully the British people – it is a sign of the desperation in the IN campaign.”
DSV last week said first-quarter 2016 operating profits were relatively flat at 643 million Danish krone (U.S. $98.59 million). Diluted earnings per share in first quarter 2016 increased to DKK 2.83 per share from 2.65 per share the previous year on net revenues that jumped 21.6 percent year-over-year to DKK 15.32 billion.
Report: DSV dumps British pound in anticipation of Brexit vote
