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HISTORICAL EVENTS IN THE FX MARKET

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HISTORICAL EVENTS IN THE FX MARKET GEORGE SOROS—THE MAN WHO BROKE THE BANK OF ENGLAND ____________________________________________________________ When George Soros placed a $10 billion speculative bet against the U.K.  pound and won, he became universally known as “the man who broke the  Bank of England.” Whether you love him or hate him, Soros led the charge  in one of the most fascinating events in currency trading history. The United Kingdom Joins the Exchange  Rate Mechanism In 1979, a Franco-German initiative set up the European Monetary System  (EMS) in order to stabilize exchange rates, reduce inflation, and prepare  for monetary integration. The Exchange Rate Mechanism (ERM), one of  the EMS’s main components, gave each participatory currency a central  exchange rate against a basket of currencies, the European Currency Unit  (ECU). Participants (initially France, Germany, Italy, the Netherlands, Bel gium, Denmark, Ireland, and Luxembourg) were then req