A Brexit vote on Thursday could produce a ‘Black Friday’ as markets react in horror to instability caused by the result, a billionaire who famously bet against the pound and won in the 1992 crash warned today.
George Soros forced then prime minister John Major to pull Britain out of the ‘European Exchange Rate Mechanism’ in 1992, sparking chaos in the markets on a day that went down in history as ‘Black Wednesday’.
Mr Soros today claimed the collapse in the value of the pound on Friday could be even bigger if Britain votes for Brexit and he warned it would leave people poorer.
Currency and stock markets have been on a roller-coaster ride during the referendum campaigning, plunging over the past fortnight as a succession of polls showed a Brexit lead.
But as market hopes of a Remain vote were raised yesterday, the FTSE100 index soared and the pound had one of its strongest days since the 2008 financial crisis.
Chancellor George Osborne doubled down on his succession of grim economic warnings over Brexit last night as he refused to rule out that the stock market could even need to be suspended on Friday.
And Mr Osborne – who last week said an ’emergency budget’ featuring punishing tax rises and spending cuts would be needed after Brexit – even claimed redundancies could be made by the end of the week.
Mr Soros’ warning today could send new shudders through markets today as opinion polls show a race which is going down to the wire.