Which British currency crisis is remembered as Black Wednesday in 1992?

Black Wednesday refers to the 1992 sterling crisis.

On September 16, 1992, the United Kingdom withdrew the pound sterling from the European Exchange Rate Mechanism. The government had attempted to keep sterling within its permitted exchange-rate band, but heavy market pressure made the policy increasingly difficult to sustain.

The crisis involved interest-rate decisions, foreign-exchange speculation, and disagreement over whether the pound’s official rate was realistic. The government raised interest rates during the day and announced further increases, but those measures did not restore confidence. Sterling was eventually allowed to float.

Black Wednesday was primarily a currency crisis rather than a conventional stock-market crash. It matters to market-crash history because it shows how exchange-rate commitments can transmit stress through financial markets. The episode also damaged the governing Conservative Party’s economic reputation and helped shape later British debates about joining the euro.