Janet Yellen and her central bank colleagues have a more global perspective that takes into account the stronger dollar, Europe's struggles and the peril looming if the overheated Chinese stock market collapses. The simplest is simply to borrow money, say, Italianlire, and convert the borrowed money into, say, deutsche marks at the fixed rates. . George Soros generally avoids the press, and in this moment of great triumph, he is as elusive as ever. . Then, the banks and investment houses got into the game for their own accounts. But this crimped their ability to stimulate their sagging economies. . The month of wild trading and sheer excitement that wrecked the European Exchange Rate Mechanism were also good times for leading.S. If those concerns keep a leash on Fed rate hikes, the bets on its policy diverging with that of the ECB will take longer to pay off. They did so by simply buying massive amounts of the weaker currency and flooding the market with the stronger currency. . In former times, powerful central banks could usually frustrate speculators. . September 1992 was a month international money managers won't easily forget. . Why does he say this? . Euro to US Dollar Exchange Rate data by, yCharts, forbes took a deep dive into that trade in the November 9, 1992 issue, illuminating how Soros made.5 billion in just a single month by betting the British pound and several other European currencies were. These events, thought Soros, would doom the Exchange Rate Mechanism. That's right: one month. He was margined to the eyebrows, but he wasn't really gambling. . Banks with big foreign exchange operations, especially Citicorp,. There are other ways, of course, to play the currency markets: through futures and options, for example. "The central banks brought September's debacle upon themselves he asserts. . Together, in the third quarter, they netted before taxes over 800 million more than what they normally earn in a quarter from trading currencies. "The profits that people like Soros recently made seem astronomical says Gilbert de Botton, chief of London's 5-billion-plus (assets) Global Asset Management. . And Paul Tudor Jones of Jones Investments. . A speculator who had performed this operation would have made a profit equal to 28 of the borrowed sum. The odds on that bet are probably a bit longer. The feared unraveling of the currency which, admittedly, would take a lot more than Greece's departure calls to mind another currency fiasco from the early 1990s, when. You might be surprised by how many European countries don't use euros: Albania, Armenia, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Denmark, Georgia, Hungary, Iceland, Kazakhstan, Liechtenstein, Lithuania, Macedonia, Moldova, Norway, Poland, Romania, Russia, Serbia, Sweden, Switzerland, Turkey and Ukraine. Configure Converter amount, aUD - Australian DollarCAD - Canadian DollarCHF - Swiss FrancCNY - Chinese Yuan RenminbiDKK - Danish KroneEUR - EuroGBP - British PoundHKD - Hong Kong DollarHUF - Hungarian ForintINR - Indian RupeeJPY - Japanese YenMXN - Mexican PesoMYR - Malaysian RinggitNOK. He has bought pounds and sold marks to cover most of his short position in 200 pound to euro sterling. . In one nation had, say, higher inflation than another, there would be great strain on the system. . The euro has plunged from.20.09 this year (see chart). George Soros made the trade of a lifetime in 1992, clearing.5 billion on his bet against the Bank of England. Paul Tudor Jones and, bruce Kovner, bet against a central bank's ability to hold the line on its online casino gratis online spiele ohne anmeldung kostenlos ohne download currency. Four weeks later it took 980 lire to buy a single. . "The world is a lot smaller than it was in 1992 says Dean Popplewell, vice president of currency analysis at foreign exchange currency Oanda. Morgan, Chemical Banking, Bankers Trust, Chase Manhattan, First Chicago and BankAmerica. . Soros and other shrewd investor will no doubt continue trying to profit off the turbulence. .