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The recent Brexit crisis has sent shockwaves throughout the global financial markets, and the impact is being felt far beyond the borders of the UK and the EU. In Singapore, the fall of the pound sterling against the Singapore dollar has created long queues at money changers as Singaporeans rush to buy pounds before they fall further. The scenes at these money changers are reminiscent of the days when the Singapore dollar was pegged to the US dollar and Singaporeans would rush to buy greenbacks whenever the exchange rate changed.

Why the Pound Dropped

The pound's fall can be attributed to the market's nervousness surrounding the uncertainty of Brexit. On the day of the referendum, the pound sterling was valued at 1.48 against the Singapore dollar. However, as the votes were tallied and it became apparent that the UK would be leaving the EU, the pound began to slide rapidly and hit a low of 1.74 against the Singapore dollar within hours. Since then, the pound has been extremely volatile, with daily fluctuations of as much as 3%.

It is not just Singaporeans who are buying pounds; investors around the world are trying to protect themselves against the uncertainty of Brexit. Many are buying US dollars, gold and other safe-haven assets, but some are also buying pounds in the hope that the currency will rebound in the future. However, this is a risky strategy as the uncertainty surrounding Brexit means that the pound could continue to fall.

Singapore Money Changers Respond

The long queues at Singapore's money changers have not gone unnoticed. The authorities are closely monitoring the situation and have told money changers to ensure that they have adequate supplies of pounds to meet demand. Money changers have responded by increasing their stocks of pounds. Some have also adjusted their exchange rates to attract customers.

Despite the long queues, money changers are still managing to provide good service to their customers. Most have implemented systems to ensure that customers do not have to wait too long in line. Many are also offering advice to customers on the best times to buy pounds and on the risks involved in buying the currency. Some are even offering to buy back pounds at the same rate, should the customer decide to sell them back within a certain time frame.

What Should You Do?

If you are planning to buy pounds, it is important to remember that this is a risky strategy. The pound's value is likely to remain volatile for the foreseeable future, which means that you could lose money if you buy pounds and the value of the currency continues to fall. It is also important to bear in mind that money changers typically charge a commission on top of the exchange rate, so make sure you compare rates and commissions before making a purchase.

If you are an investor, it is worth considering alternatives to the pound, such as gold, US dollars and other safe-haven assets. These assets tend to perform well during times of uncertainty, as investors seek to protect their wealth. However, it is important to remember that all investments come with risks, and you should always seek professional advice before making any investment decisions.

Conclusion

The Brexit crisis is having far-reaching effects on the global financial markets, and Singapore is no exception. The fall of the pound sterling against the Singapore dollar has created long queues at money changers, as Singaporeans and investors rush to buy pounds before they fall further. However, buying pounds is a risky strategy, and it is important to weigh the risks against the potential rewards. Money changers in Singapore are responding to the surge in demand by increasing their stocks of pounds and offering advice to their customers. If you are planning to buy pounds, make sure you compare rates and commissions before making a purchase, and be aware of the risks involved.

Stay informed about the latest developments in the financial markets by reading professional news sources and consulting with financial advisors. Remember, investing and currency exchange is a complex process that requires a lot of information and analysis, so take your time and make informed decisions.

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