I Became the Youngest Daughter of a Chaebol Family

How much is one pound worth?

Britain and Germany agreed to the following value for one pound:

1 pound = 2.95 Deutsche Marks

As long as you’re in the ERM, that’s the exchange rate you’re required to maintain.

Technically, going down to about 2.778 marks is acceptable. You can’t completely fix the rate unless it’s a pure fixed-rate system.

If the pound drops any lower than that, it means the British government is obligated to step in and stabilize it.

But I wasn’t planning to mess with Britain just yet. I had another target in mind.

Do you remember the cause-and-effect chain that led to Soros wrecking Britain?

[Germany raises interest rates → Deutsche Mark value increases → Pound value drops → Need to defend exchange rate]

If you think through this cycle carefully, you realize the formula works even without the pound.

In fact... it's even more solid that way. Even if Britain was posting negative growth, it’s still Britain. Their economic weight class is in a league of its own compared to others.

So in actual history, once Britain withdrew from the ERM, hedge funds that had gotten a taste for blood went on a rampage across Europe, attacking national currencies. And some of those attacks succeeded.