The pound sterling is devalued to-day from 4,03 dollars to 2,80 dollars. This was announced by the Chancellor of the Exchequer, Sir Stafford Cripps, in a broadcast last night.
The International Monetary Fund has given its approval to the new rate. Banks and stock exchanges will be closed to-day, but Trustee Savings Banks and the Post Office Savings Bank will remain open. The day will not be a general holiday.
The first effect of devaluation on prices at home is that the 4d. loaf will cost 6d. after about fourteen days, unless there is a change in the value of the Canadian dollar.
╥A Constructive Step╙
The Secretary of the United States Treasury, Mr. John Snyder, said last night that the British devaluation should result in ╥an early rise in their dollar resources.╙ He described it as ╥a constructive economic step╙ whose long-term results should be a healthy impetus to world-wide multilateral trade.
M. Camille Gutt, managing director of the International Monetary Fund, described the devaluation as ╥a step in the right direction.╙
Nine other nations ╤ Australia, India, South Africa, New Zealand, Eire, Denmark, Norway, Egypt, and Israel ╤ followed Britain╒s devaluation lead last night. The French and Dutch Cabinets met, but no decisions were announced.
