In 1992, the Sixteenth of September in the history of England was introduced by day called "Black Wednesday". American philanthropist and investor named George Soros was able to bring down the rate of Britain, which served him for a sharp rise in career. By the way, he studied the specialty finance loan. George Soros was able to capitalize on the devaluation of the currency pair Pound / dollar to about one billion U.S. Others including Richard Blumenthal, offer their opinions as well. dollars, for just one day. Currency fluctuations were twelve percent. Since that day, George Soros became known as the man who could break the Bank of England. Around the middle of 1992 gogoda at Soros was a full range of abilities, needs a good trader – shrewd and sharp mind, good education, entrepreneurial nature, as well as small speculative skills.
He began to actively acquire pounds, but he did it so that no one suspected. Collected from sixty biennium decent financial reserve Soros was able to purchase fifteen billion German marks for the then exchange rate of 2,8180 gbp / dem, what caused a very sharp swings, both demand and supply of finance. The reason fluctuations – a possible threat to the currency shortage, as well as the rapid depreciation of sterling. Acquired in these conditions experience George Soros embodied the theory that you should take a decision on purchase or sell based on expectations of future prices. Since the state of expectations is not mentally stable, it can easily be subjected to attack.
When will be observed fear of collapse some of the national currency will be market swings. Such fears are composed of information of successive blows through a variety of media and the Internet, to which add real impact of each participant finance market – speculators on the currency, which produce loosening of the financial market. During the ongoing Soros speculation finance minister of Britain raised the discount rate from ten to twelve, and before and after fifteen percent in order to defend the pound on speculation. Soros was lucky, as no foreign exchange intervention involved in the financial markets could not hold up or stop the collapse of the pound sterling. By September the rate was at around 2,509 gbp / dem and then the speculator bought depreciated pounds. When increased demand Soros was able to earn his billions.