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Today in History: Pound expelled from ERM, plunges in value

By Drooid · Sep 16, 2026, 10:34 AM UTC · How we work

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Summary

Story summary

On 16 September 1992, Britain’s government withdrew the pound sterling from the European Exchange Rate Mechanism after failing to keep it above the required floor, triggering a sharp devaluation. The crisis, known as Black Wednesday, unfolded while the UK held the EU Council presidency, exposing flaws in the fixed-exchange system.

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Story summary

On 16 September 1992, Britain’s government withdrew the pound sterling from the European Exchange Rate Mechanism after failing to keep it above the required floor, triggering a sharp devaluation. The crisis, known as Black Wednesday, unfolded while the UK held the EU Council presidency, exposing flaws in the fixed-exchange system.