Definition of Black Wednesday:
Black Wednesday refers to September 16, 1992, when a collapse in the pound sterling forced Britain to withdraw from the European Exchange Rate Mechanism (ERM). The U.K. was forced out of the ERM because it could not prevent the value of the pound from falling below the lower limit specified by the ERM. The European ERM was introduced in the late 1970s to stabilize European currencies in preparation for the Economic and Monetary Union (EMU) and the introduction of the euro. Countries seeking to replace their currency with the euro were required to keep the value of their currency within a specific range for several years.
(A name given to) Wednesday 16 September, 1992, when a massive surge in sales of the pound, perceived to be weak and overvalued, forced its official devaluation and the exit of the United Kingdom from the European Exchange Rate Mechanism.
Before Black Wednesday, the U.K. had been in the European ERM for two years. However, the pound was depreciating and falling close to the lower limits set by the ERM. The British government took steps to bolster the pound, including raising interest rates and authorizing the use of foreign currency reserves to purchase pounds.
September 16, 1992 when Sterling lost 15 percent of its value against the German currency (Deutschmark) after its withdrawal from the exchange rate mechanism of the European Union (EU).
How to use Black Wednesday in a sentence?
- Because of his role in Black Wednesday, George Soros is known for "breaking the Bank of England.".
- Black Wednesday was widely condemned as a massive waste of money at the time.
- Black Wednesday refers to September 16, 1992, when a collapse in the pound sterling forced Britain to withdraw from the European Exchange Rate Mechanism (ERM).
- On the other hand, Black Wednesday kept the U.K. out of the eurozone and saved it from more serious economic problems later on.
Meaning of Black Wednesday & Black Wednesday Definition