Billionaire George Soros, who famously profited by betting against the
pound in a 1992 currency crisis, has predicted a plunge in the sterling
if Britain votes to leave the European Union.
The business
magnate forecast an even steeper drop than occurred on “Black
Wednesday,” which forced Britain to withdraw from the European Exchange
Rate Mechanism, in an article in the Guardian newspaper published late
June 20.
“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,” the 85-year-old wrote.
He estimated a drop for the currency of at least 15 percent.
“Then
ironically one pound would be worth about one euro, a method of
‘joining the euro’ that nobody in Britain would want,” Soros added.
The
pro-Brexit side has accused “Remain” campaigners of scare tactics by
arguing that a vote to leave the EU on June 23 would damage Britain’s
economy.
Soros warned that leaving the EU would lower house prices and cause job losses, potentially causing a recession.
One
of the world’s richest men according to Forbes magazine, Soros warned
that powerful “speculative forces” would be “eager to exploit any
miscalculations by the British government or British voters.”
“A vote for Brexit would make some people very rich, but most voters considerably poorer,” Soros wrote.
“A vote to leave could see the week end with a Black Friday, and serious consequences for ordinary people.”
After
earlier surveys indicated narrow gains for the “Remain” camp, global
markets rallied and the pound rose to a three-month peak.
But the latest polls published ahead of the June 23 vote suggest the result could go either way.