But just a few hours before the meeting Lamont,fuel cell oakley, the German Federal Bank President Shilexinge been interviewed,oakley radar path, expressed the hope that the depreciation of the lira and the pound, but ready to defend the French franc. September 16, 1992 morning, the Prime Minister approved in Lamont, officially announced the rate increased from 10 % to 12 % in order to defend the pound, but sterling still some gains. Market has not only optimistic about the British government's actions, but rather think of England to raise interest rates is a panic move. At this point, a lot of people in the world noticed changes in sterling bears interest, a lot of hot money began to enter.
Immediately behind a lot of hot money,oakley fuel cell polarized, there has been $ 50 billion of large short pounds. Such a generous, making the Bank of England, drawn from the $ 78.8 billion $ 26.9 billion in foreign exchange reserves to buy pounds move becomes futile, the exchange rate is still not supported. Is selling sterling exchange rate would coach usa decline as flood burst, out of control. Englishman this time is running out of tricks, and can only take a hike this is the only means, hoping to ride out the storm.
This is just the death throes of the British government,oakley radar, in the development of the case without any vote, but rather highlights the inability of the British government. Did not meet the appetite of the brightest predators, events naturally not stop there, as the initiator, Soros cards again. Soros believes that desperate acts of the UK can not maintain its position, and thus be encouraged, more boldly continue venting pounds. The outcome is very simple: raise interest rates twice in the morning and afternoon. At this time, the British real despair, only drastic, take the most drastic means - launched the European exchange rate mechanism.
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