Legendary investor George Soros has issued a stark warning to Britain: If its voters choose to leave the European Union, powerful speculative forces could cause the pound to crash by more than 20%.
"Too many believe that a vote to leave the EU will have no effect on their personal financial position," Soros wrote in The Guardian. "This is wishful thinking."
After the pound plunged in 1992, the central bank was able to cut interest rates in order to stimulate the economy. But now, rates are already at very low levels, and if voters opt out Thursday, Soros said the consequences will be "much less benign" than in 1992. It could even bring about a "Black Friday" for markets, he wrote.
Soros also predicted that sky-high economic uncertainty would cause capital to flood out of Britain.
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