Soros Says Pound Devaluation Is Option for Next U.K. Government

George Soros, a billionaire investor, said that U. K. government should consider a further devaluation of its currency to rebalance the economy and assist the recovery. The pound has already dropped 25% since 2007, making U.K. exports cheaper overseas. Soros says that U.K. faces a huge budget deficit, mainly, because government had to take the debt of banks that were in trouble. Now U.K. budget deficit is at around 12% of the GDP, and its debt constitutes to 60.3% of the GDP, but as Soros says U.K. is not at the limits of its borrowing capacity. “It’s a question now of, if you now cut the budget deficit and borrow less, you could probably keep the currency, raise the interest rate, you could keep the currency from going down,” he said. But history shows that U.K still has room to borrow more money to bolster its public finances.