Brother Cat took a look at the news. On February 8, that is, last Thursday, the British Daily Telegraph reported that Soros was supporting actions to block Brexit.
Soros
Then Soros was ridiculed by the British media and netizens. The British media criticized Soros for being nosy, including saying, "Keep your dirty money." Netizens said that he "can't hide the fox's tail."
In fact, these reactions are understandable. After all, Soros’ attack on the pound was not that far away from now.
The British pound has been the main currency in Europe and even the world for more than two hundred years. In November 1989, the glass wall collapsed and Germany was reunified. However, Soros believed that after reunification, Germany would face a long period of economic constraints. This would be an opportunity for him, especially in 1990, when the United Kingdom decided to join European exchange rate system, and in February 1992, 12 EU countries signed the Maastricht Treaty. The signing of this treaty brought huge pressure on the central banks of these countries to cut interest rates or depreciate.
Speculators, including Soros, have spotted the opportunity and have continued to expand their position sizes in the past few months, preparing to attack the pound. By September, speculators began attacking weak currencies within the European exchange rate system, including the pound.
Soros began selling weak European currencies in the market. And central banks of various countries have to spend huge sums of money to support their own exchange rates. However, this is a drop in the bucket.
GBP/CNY Chart
The pound has been falling. In this sniper, the British government used 26.9 billion US dollars of foreign exchange reserves but failed to withstand Soros's offensive. In the end, It failed miserably and was forced to withdraw from the European exchange rate system. Soros, on the other hand, has made huge profits, close to 1 billion US dollars. Not only that, the total profit from the long trading of interest rate futures in Britain, France and Germany and the short trading of Italian lira also reached 2 billion US dollars.
September 15, 1992, was a harvest day for Soros, but it was Black Wednesday for the British.