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Question - During the currency crisis of September 1992, the Bank of England borrowed DM 33 billion from the Bundesbank when a pound was worth DM 2.78 or $1.912. It sold these DM in the foreign exchange market for pounds in a futile attempt to prevent a devaluation of the pound. It repaid these DM at the post-crisis rate of DM 2.50:£1. By then, the dollar: pound exchange rate was $1.782:£1.
By what percentage had the pound sterling devalued in the interim against the Deutsche mark as well against the dollar?
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