Billionaire currency trader George Soros warns Brexit will trigger a plunge in sterling greater than Black Wednesday
But veteran financier said leaving EU won’t come with benefits seen after 1990s crisis that helped him make his fortune
BILLIONAIRE currency trader George Soros is warning a vote for Brexit will trigger a plunge in the pound greater than Black Wednesday.
But the veteran financier said leaving the EU won’t come with the benefits seen after the 1990s crisis that helped him make his fortune.
He said he was certain sterling would fall steeply and quickly should Brits decide to quite Brussels in Thursday’s referendum.
And he believes it will lead to a "Black Friday" scenario more immediate and dramatic than when Britain crashed out of the European Exchange Rate Mechanism (ERM) in the 1990s.
However, unlike the departure then, there would be none of the benefits to the economy seen by a devalued pound and most voters will be left "considerably poorer", he predicted.
Mr Soros said it was "wishful thinking" by many that a vote to Leave would have little effect on their personal finances, with only a lucky few City speculators in line to get rich on such a move.
His intervention comes as the value of sterling climbed on Monday after polls showed the field between Remain and Leave had narrowed.
The Hungarian's hedge fund reportedly made a billion dollars by betting against the pound at the time of Britain leaving the ERM.
Speaking to , he said a devaluation in the pound would be bigger and more disruptive than the 15% drop seen in September 1992.
But with Britain's finances in a more fragile state than then and interest rates running at record lows, there would be little room for the Bank of England to manoeuvre.
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Mr Soros told the newspaper: "Too many believe that a vote to Leave will have no effect on their personal financial positions.
“This is wishful thinking.”
He added: "If Britain leaves the EU it will have at least one very clear and immediate effect that will touch every household: the value of the pound would decline precipitously.
"A vote to leave the EU would also have an immediate and dramatic impact on financial markets, investment, prices and jobs.
"A vote to Leave could see the week end with a Black Friday and serious consequences for ordinary people."
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