{"id":5818,"date":"2016-07-22T05:00:08","date_gmt":"2016-07-22T05:00:08","guid":{"rendered":"http:\/\/www.investollo.com\/?p=5818"},"modified":"2016-07-22T05:00:08","modified_gmt":"2016-07-22T05:00:08","slug":"george-soros-black-wednesday-trade-1-man-1-day-1-billion-usd","status":"publish","type":"post","link":"https:\/\/www.areyouready.sg\/george-soros-black-wednesday-trade-1-man-1-day-1-billion-usd\/","title":{"rendered":"George Soros and The Black Wednesday Trade : 1 man 1 day $1 Billion USD"},"content":{"rendered":"
If there ever was a lesson we need to take from the Black Wednesday trade, it is, artificially controlling something that cannot be controlled is bound to backfire on you.<\/p>\n
Prior to the European Union being commissioned there was something called the European Exchange Rate Mechanism (ERM for short). Post the world war the European countries decided to band together and integrate economically to stop fighting with each other and create wars.<\/p>\n
As the Deutschmark was the strongest currency at that point, the European countries decided to align their currencies with it. One decision they took, which in hindsight was a very bad move was to fix their currency to the deutschmark. This meant they would artificially keep their currencies hovering around plus or minus 6% from the deutschmark.<\/p>\n
Currencies are one of the most volatile trading<\/a> assets in the world. People are buying and selling all the time, imports and exports affect currency. The rate of a currency is dependent on supply and demand and is priced automatically. Countries can take slight measures in improving the exchange rate, like buying and selling their own currency.<\/p>\n