Sterling could slide to as low as parity with the dollar if ministers fail to come up with a credible Plan B for Britain outside the EU, one of the world’s most influential investors has warned.
Mohamed El-Erian, chief economic adviser to the insurer Allianz, raised the unprecedented spectre of one pound equalling one dollar as he urged ministers on both sides of the Channel to urgently forge a free trade deal.
The pound rebounded a little yesterday, rallying to $1.2920 after falling to as low as $1.2798 in the early hours of Wednesday. But it remains 13 per cent…