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Does the U.K. Really Depend on the Kindness of Strangers?

Three decades after Britain was forced to leave the European Exchange Rate Mechanism, fears of a new sterling crisis are spreading across markets. The currency is hitting 37-year lows against the U.S. dollar just as the country’s current account is at a record deficit and borrowing is about to jump to finance new Prime Minister Liz Truss‘ plan to freeze energy bills, which could cost north of £150 billion, equivalent to around $169 billion.

But worries about the pound might be exaggerated.