21:53 GMT +323 May 2018
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    Sterling to Drop After Brexit Lower Than During 1992 Black Wednesday

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    US billionaire investor George Soros predicted that Britain’s EU exit could spark a much steeper fall in the value of the British currency than during the 1992 sterling crisis, in an op-ed published Monday.

    MOSCOW (Sputnik) — Brits are preparing to vote Thursday in a referendum on continued EU membership. Writing in the Guardian newspaper, the US magnate warned them of a possible "black Friday" that could follow the decision to leave, comparing it to the "black Wednesday" of 1992.

    "Sterling is almost certain to fall steeply and quickly if there is a vote to leave," he claimed. "I would expect this devaluation to be bigger and more disruptive than the 15% devaluation that occurred in September 1992."

    Soros estimated that the UK currency could shed more than 20 percent of its current value of $1.46 to below $1.15. This would drive up the cost of imports and foreign holidays like when Britain dropped out of the Exchange Rate Mechanism 24 years ago.

    The billionaire, who earned around a billion dollars on the lower-value pound sterling in 1992, said Brits were "grossly underestimating" the costs of exiting the European Union for households, which could end up with an annual income loss between $4,000 and $7,000.

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