On Thursday the people of Britain will cast an historic vote on whether or not to leave or remain in the European Union. This decision could have monumental impact on the British Economy. With so much at stake, people of the world wanted to know what one of the most famous investors had to say about the vote being called “Brexit”.

George Soros is one of the world’s most successful investor and business men and his opinion is valued by investors, economists and leaders around the world. Soros has serious concerns about the economic consequences of Britain leaving the European Union. He has been part of a group of high profile individuals who have expressed serious concerns about the potential exit out of the European Union.

Soros recently compared the potential impact on the British pound to that of the infamous Black Wednesday” — Sept. 16, 1992 a day that Soros knows well. Investors including George Soros predicated that Britain would pressure to leave the European Exchange Rate Mechanism (ERM) so they started short selling which added additional strain on the Bank of England. The investors how shorted the currently made huge returns on Black Wednesday. Although the currency was negatively impacted in the short term, it is thought that the British Economy eventually improved over time as a result of Black Wednesday.

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Brexit wound: UK vote makes EU decline ‘practically irreversible’, Soros says

However, Soros believes that on Friday if Britain chooses to exit the EU that is will have a similar impact on the currency as the short trades had on Black Wednesday. However the main difference is that he does not see that Britain will see any upside in the future as it experienced in 1992 after Black Wednesday. Soros’ main concern is that unlike in 1992 when British government was able to lower the interest rate by 4.5%, today there is no room to lower the rate. Without easing the citizen’s financial burden the country will not see the economic improvement it did in 1992. In addition in 1992, manufacturing enjoyed a surge which led to additional economic growth, which is also another ingredient that will not be replicated this time around. George Soros believes that the majority of the citizens will be hurt financial buy an exit and this is supported by studies conducted by the Bank of England.

Soros started his fund in 1973 and since its inception it has made over $40 Billion. Soros is one of the Worlds wealthiest men estimated to be worth around $22 Billion. However Soros also dedicated much of his time to philanthropic activities. Open Society is the organization that has reach in over 100 nations around the world. Its focus is on improving quality of life by encouraging more open and free societies. This is accomplished by contributing to causes that support education, public health and free press.

Learn more about George Soros:

https://www.project-syndicate.org/columnist/george-soros