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Because foreign investors believe that Britain's leaving of the EU will be bad for business, so are not looking to invest in the country as much as they used to. When Britain was committed to membership of the European Union, it was open to the EU single market, ensuring free trade links between it and other European nations that were enshrined in European law. Now that the UK has voted to leave, it's trading and business links to the European Union may not be as open and accessible as they used to be, resulting in tariffs being levied upon exports and imports. This will make it more costly for outside investors to manufacture and sell their goods from the UK, so they are not investing so heavily in the UK economy, resulting in the value of the pound sterling falling on international markets.

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Q: Why is the British pound dropping after the UK voted to leave the European Union EU?
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