The world’s most famous currency speculator has warned a vote on Thursday for Britain to leave the EU would trigger a bigger and more damaging fall for sterling than the day he forced Britain out of the Exchange Rate Mechanism almost a quarter of a century ago.
George Soros, writing in the Guardian, said that a Brexit vote would spark a “black Friday” for the UK, but the devaluation of sterling would bring none of the benefits to the economy that it enjoyed after it dropped out of the ERM on 16 September 1992 – Black Wednesday.
He said that, as in 1992, there would be big financial gains for speculators who had bet on the UK leaving the EU but that such an outcome would leave “most voters considerably poorer”.
Soros said that unlike after Black Wednesday, there was little scope for a cut in interest rates, the UK was running a much larger current account deficit, and exporters would be unable to exploit the benefits of a cheaper pound due to the uncertainty caused by a vote to leave the EU. – READ MORE