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16/09/1992 Black Wednesday

The UK joined European Exchange Rate Mechanism, therefore agreeing to keep the pound value at an agreed limit. George Soros recognized the unfavorable position of the UK at the time it joined ERM. Soros made a profit by short selling sterling to Bank of England, forcing the government to announce the rise in the base interest rate.

Relations

  • Essentials 

  • Black Wednesday 

  • Prelude 

  • The currency traders act 

  • Aftermath