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The speculators betting against it added to the bank's difficulties, in fairness: they didn't stand outside the process, they were part of it.
by hkt 4y ago
The speculators betting against it added to the bank's difficulties, in fairness: they didn't stand outside the process, they were part of it.
- refurb 4y agoHow did they add to the banks difficulties? My understanding is the BOL tried to maintain the exchange rate. Speculators bet they couldn't do it. If the speculators had never made their bets the exchange rate still would have collapsed because foreign banks were selling their GBP far faster than the BOL could buy it (or had the capacity to buy).