Consequences of a run on the pound
Consequences of a run on the pound often include a decline in the strength of the pound, and a reduction in the price of UK stocks, bonds and funds.
This could affect the UK economy as a whole, unless measures are taken to combat the effects of a run on the pound. One method of doing so is for the British government to sell foreign currency reserves in exchange for pounds, which would reduce the supply of sterling in the global economy. In turn, this would increase the price of GBP, assuming demand remains constant.
Other measures that the British government could take include increasing interest rates or reducing inflation rates. Both of these options will serve to strengthen the pound and hopefully cause it to rise in value compared to other currencies.