Yesterday, on September 8, the Queen of the United Kingdom, Elizabeth II, passed away at the age of 96 after 70 years of rule. We express our deepest condolences to the royal family and all citizens of the Commonwealth.
A new king, Charles the III, will be formally announced and proclaimed the ruler on Saturday. He is the eldest of Elizabeth’s four children, being 73 years old, and we’ll be the most senior successor in the history of Britain.
Will the change on the throne affect financial markets? It’s difficult to state this at the moment, but let’s take a closer look at what will change in the UK and the Commonwealth.
For people around the world, Elizabeth II was a symbol of stability. Coronated in 1952, she forged an image of the British monarch and its continuity in the heads of billions of people. She’s present on passports and money around the Commonwealth. Old money with the image of Elizabeth II will be staged out with time and replaced with the new king’s portrait.
The Bank of England said notes featuring Queen Elizabeth II will still be considered legal money that can be exchanged. It said it would make an additional announcement about the country’s existing notes “once the mourning period has been observed.”
As for the financial market, the London Stock Exchange will be closed on the day of Queen’s the funeral as the day will be announced as a bank holiday.
For at least 12 days after her death, the United Kingdom will halt, potentially costing the nation millions in lost income.
Buckingham Palace has crafted a fool-proof plan for the days following Queen Elizabeth II’s death, including a backup plan in case her majesty passes while in Scotland. The contingency plan is called “Operation Unicorn.”
The “London Bridge” Protocol was used to handle the death of Queen Elizabeth II and the succession. The Guardian reported that the Operation Unicorn plan was in use when she died at Balmoral.
An “Accession Council” will meet behind closed doors at the palace to discuss the matter.
When most workers have left and tourist attractions have shut down, a Royal Accession Council will be held at St. James’s Palace to officially designate Prince Charles’s replacement.
The Accession Council will include privy councilors, lords, the lord mayor of London, and high commissioners from several Commonwealth countries, among others. Politicians will pledge their allegiance to the new monarch.
Prince Charles is now King Charles III. Prime Minister Liz Truss announced his title.
Formally Queen Elizabeth II was the head of 54 countries that used to be a part of the British Empire. Heads of Government will elect the new Head of the Commonwealth. Some countries would choose to replace the British monarch.
We don’t expect significant changes. The Queen was an important symbol worldwide, but her political role was symbolic, and King Charles III will continue doing this. One may argue Elizabeth II’s personality was exceptional. She also took the throne at a time in history.
How vital was Elizabeth’s figure for the Commonwealth, and could the void might influence the cooperation of the countries that were part of the former Empire? Many nations may decide to go from monarchy to republic, but the impact on their economy is difficult to predict.
To sum up, Elizabeth II was an essential global figure, but looking for correlations between her passing away is a long stretch.
