Soros’s process of defeating the Bank of England:

After Soros’s calm analysis, he believed that the new Germany will experience a period of economic constraints due to the reconstruction of the former East Germany. Germany will pay more attention to its own economic problems and will have no time to help other European countries tide over their economic difficulties. This will have a profound impact on the economies and currencies of other European countries.

In 1990, the United Kingdom decided to join the European Exchange Rate System (ERM), a new monetary system created by Western European countries. Soros believes the UK has made a decisive mistake.

As early as the signing of the Maastricht Treaty, Soros had foreseen that the European exchange rate system would be difficult to maintain coordination due to the economic strength of each country and their respective national interests.

Less than a year after the Maastricht Treaty was signed, some European countries have found it difficult to coordinate their economic policies. When the British economy is in a long-term recession and is facing many difficulties, it is impossible for the UK to maintain a high interest rate policy. The only feasible way to stimulate the country's economic development is to lower interest rates. Soros and other speculators have been increasing the size of their positions over the past few months in preparation for a sniper attack on the pound.

Soros shorted US$7 billion of the pound in this bet and held a long position of US$6 billion of the mark. At the same time, Soros considered that the depreciation (appreciation) of a country's currency usually leads to the In response to the rise (fall) of the U.S. stock market, he bought another $500 million worth of British stocks and shorted German stocks.

On September 15, 1992, Soros decided to short the pound in large quantities. The pound-to-mark exchange rate fell all the way to 2.80. Although there was news that the Bank of England purchased 3 billion pounds, it still failed to stop the pound's decline. By the evening's close, the pound-to-mark exchange rate had almost fallen to the lower limit stipulated by the European exchange rate system. The pound is on the verge of exiting the European exchange rate system.

Extended information:

Soros’s personal gains:

Soros was the biggest winner in the attack on the pound and was once called defeated by a magazine People from the Bank of England.

Soros has made nearly $1 billion in profits from shorting the British pound, and his long positions on British, French and German interest rate futures and his short positions on the Italian lira brought his total profits to as high as $2 billion. , of which Soros’ personal income is 1/3. In 1992, Soros's fund grew by 67.5%.

Reference: Baidu Encyclopedia - Soros sniping against the British pound