Study Notes
Economic History - UK Leaves the Exchange Rate Mechanism
- Level:
- A-Level
- Board:
- AQA, Edexcel, OCR, IB
Last updated 22 Mar 2021
Black Wednesday,16 September 1992
The UK Conservative government was forced to withdraw the Pound from the European Exchange Rate Mechanism (ERM) due to pressure by currency speculators — most notably George Soros, who made over US$1 billion from this speculation. In 1997 the UK Treasury estimated the cost of Black Wednesday at £3.4 billion.
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