When it comes to the future of the sterling silver, there are no official plans yet, says the head of the gold and silver division of the European Central Bank (ECB), Mario Draghi.
“No one’s talking about a replacement for sterling silver for the foreseeable future,” he told Reuters in an interview.
“That is the fundamental problem, and we need to deal with that.
I am not going to say we will replace the sterling for the next 10 years.”
Draghi said the ECB could raise interest rates if the currency lost more than half its value.
But he said there was no immediate prospect of that happening.
He also said there is no evidence to suggest that the sterling has lost its purchasing power, which is a key part of a currency’s appeal.
The euro has gained against the dollar, the pound and the yen since the start of the year.
In a move to ease tensions with Britain over its decision to leave the EU, Draghi has proposed the ECB move the euro up a notch to parity with the dollar in an effort to spur the currency to a more sustainable level.
However, he said the European Commission will not make such a move unless the pound drops below $1.00.
Draghi’s comments come after the Bank of England on Friday said the UK’s decision to quit the European Union would be an economic risk for the UK.
But he said that if Britain leaves, it should not be considered a downgrade.
While he said he did not expect the pound to fall much below $2.00, he did think the move would create an economic drag on the UK and the wider world.
For now, Draghauses reaction to the sterling’s fall echoes a warning he made last week, when he said sterling would likely not lose its purchasing value in the short term, but he would wait and see.
What will the future hold for the pound?
The pound fell against the euro in late trading on Friday, hitting a seven-month low against the greenback.
Stocks have been hit by uncertainty over Brexit.
Investors have been concerned about the impact on the British economy of a potential hard Brexit, as well as the economic fallout of a new tax bill that could hit the budget.
Meanwhile, the European Court of Justice has ruled that UK banks are obliged to open more branches in Ireland as a result of Brexit, while the European Parliament has called on the government to lift the restrictions on the number of staff at banks in Ireland.