oussama94
05-28-2017, 19:44
Whether the return to a floating currency was due to the Soros-led attack
on the pound or because of simple fundamental analysis is still debated
today. What is certain, however, is that the pound’s depreciation of
almost 15 percent against the deutsche mark and 25 percent against the
dollar over the next five weeks (as seen in Figure 2.2 and Figure 2.3) resulted
in tremendous profits for Soros and other traders. Within a month,
the Quantum Fund cashed in on approximately $2 billion by selling the now
more expensive deutsche marks and buying back the now cheaper pounds.
“The man who broke the Bank of England” showed how central banks can
still be vulnerable to speculative attacks.
on the pound or because of simple fundamental analysis is still debated
today. What is certain, however, is that the pound’s depreciation of
almost 15 percent against the deutsche mark and 25 percent against the
dollar over the next five weeks (as seen in Figure 2.2 and Figure 2.3) resulted
in tremendous profits for Soros and other traders. Within a month,
the Quantum Fund cashed in on approximately $2 billion by selling the now
more expensive deutsche marks and buying back the now cheaper pounds.
“The man who broke the Bank of England” showed how central banks can
still be vulnerable to speculative attacks.