Currencies can fluctuate dramatically in value.

Did you know that the value of currencies can change rapidly within minutes due to various factors such as economic indicators, geopolitical events, and market speculation? For instance, a simple tweet from a world leader or a sudden economic report can cause a currency to rise or fall significantly in a short period.

One notable example of currency volatility occurred in 1992 when billionaire investor George Soros famously bet against the British pound. His actions led to the infamous "Black Wednesday" where the pound crashed, forcing the UK to withdraw from the European Exchange Rate Mechanism.

This unpredictability in currency values highlights the complex and interconnected nature of global financial markets. Understanding these fluctuations can help individuals and businesses make informed decisions when dealing with international trade or investments. Next time you exchange currencies, remember that their values are not set in stone but subject to constant change based on a myriad of factors.