The day when the British government was forced to withdraw the pound from the European Exchange Rate Mechanism. The date of the Black Wednesday crash was September 16, 1992, and five years later the UK Treasury estimated that the loss from that day was around £3.14 billion.
The picture shows us how Bank of England followed the market and changed its rates during the day. The central bank tried to strengthen the pound by rising interest rates all the way up to 17 percent, but the downtrend had already began. George Soros made over 1 billion GBP profit by short selling the sterling on the Black Wednesday. The main loss for the public was the devaluation of the currency. Do not get fooled by the high interest and definitely inform yourself before you sign a long contract on your deposit. Still thinking, that news and are shaping the market?
