Black Wednesday

Black Wednesday refers to September 16, 1992, when the UK’s government was forced to withdraw the British pound from the European Exchange Rate Mechanism (ERM). Leading up to that day, the pound was under pressure due to economic concerns and doubts about the UK’s ability to support its value. The government and central bank tried to defend the pound by spending large sums to buy currency and raise interest rates, but this failed. As a result, the pound plummeted in value, causing financial losses and a loss of confidence in the UK’s stability, marking a significant event in international currency markets.