FX fact: Black Wednesday
MARKET NEWS
Few involved in the currency markets at the time will forget September 16 1992, or 'Black Wednesday' as it is popularly known. Many remember it as the day the UK was humiliated in the financial markets, and those present described trading that day as "mayhem".
At that time the UK was part of the European Exchange Rate Mechanism (ERM), an initiative founded in 1979 in a bid to promote currency stability throughout Europe. Member nations' exchange rates were allowed to fluctuate within a band of 2
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