The Quantum Fund has become the focus of the international financial community because of the several large-scale currency snipers launched by Soros in the 1990s with the fund. During this period, Quantum Fund, with its strong financial resources and fierce style, made waves in the international currency market, launched attacks on weak currencies and succeeded repeatedly.
Europe
In Europe, the British pound crisis and the Italian lira crisis. In the early 1990s, in order to cope with the linked exchange rate within the European Community, the pound exchange rate was artificially fixed at a higher level, triggering attacks from international currency speculators. Quantum Fund took the lead and sold the pound on a large scale in the market and bought the German mark. Although the Bank of England vigorously sold the Deutsche Mark to purchase the British pound and cooperated with measures to raise interest rates, it was still defeated by the Quantum Fund’s attack and retreated. The British pound was forced to withdraw from the European currency exchange rate system and float freely. The exchange rate of the British pound was within 1 month. It fell 20%, and the Quantum Fund made hundreds of millions of dollars in windfall profits in this pound crisis. Prior to this, the Italian Lira suffered the same fate, and the Quantum Fund also played the leading role.
America
In the Americas, the Mexican financial crisis. In 1994, Soros' Quantum Fund launched an attack on the Mexican peso. Mexico’s healthy economic growth before 1994 was based on excessive reliance on short- and medium-term foreign loans. In order to control domestic inflation, the peso exchange rate is overvalued and floats pegged to the US dollar. The peso attack initiated by the Quantum Fund caused Mexico’s foreign exchange reserves to run out in a short time and had to abandon the peg to the US dollar and float freely, which caused the collapse of the Mexican peso and the domestic stock market. The Quantum Fund was in this crisis. The income is high.