Recently, Privalgo has seen a huge influx of sterling purchases. The current banking crisis has impacted banks all over the world, but, presently, the UK banking sector appears strong. As a result, investors are taking advantage of the UK’s sturdy banks and are purchasing its currency while it’s relatively affordable.
All of this points to one destination: sterling back to safe-haven currency status.
UK banking sector strong
While banks in the USA and Europe have shown signs of fragility this week, the UK banking sector appears to be holding strong. The Bank of England’s cyclical stress testing of UK banks may give further validity to the market, firming up the sector as a reliable and sturdy option.
Trade in sterling purchases up 29%
Privalgo has seen sterling purchases increase 29% in the last ten days, compared to the ten days prior. The increase coincides with the collapse of SVB, followed by uncertainty in Credit Suisse.
Sterling’s time to step into the limelight
Aaron Morley, Relationship Manager at Privalgo explains, “In the current landscape, investors have two main concerns. First, to ensure investments are safe, and second, to generate maximum value from their investments.”
“Right now, the UK banking sector appears to be safer than the US and Europe. Sterling is also relatively inexpensive compared to other major currencies. So, we could see investors looking to shift their funds into supposedly secure UK banks and capitalise on the UK’s affordable currency.”
Daniel Biggs, Privalgo CEO confirms, “Such a move, if it happens on a large scale, could be a huge boost for sterling and potentially position it as a safe-haven currency while we wait for the current banking storm to subside.”
Daniel continues, “With GBP rising to a two-month high and continued volatility in the global banking sector, we expect to see GBP continue to strengthen in the short term.“
A sterling future
Daniel goes on to say, “For the first time in a decade, we’re seeing growing optimism that sterling will once again become a safe-haven currency, and our trading volumes confirm huge growth in the FX and payments market.”
“Our total trading volumes are growing at an exponential rate. Latest figures from January this year show a 28% increase in total trading volumes at Privalgo.”
Privalgo confirms the trend towards sterling is across the board: “We’re seeing an overall increase in interest and confidence in sterling from all industries, company sizes, and locations. The trend is clear, we’re being asked about sterling with far greater regularity than we’ve seen for ten years.”
If your business has an exposure to sterling, get in touch. Book a free chat with a Privalgo Currency Specialist by clicking the button below.Book a chat