THE GOVERNMENT of the United Kingdom today announced its decision to change the par value of the pound sterling from $2.80 to $2.40. I know this decision was made with great reluctance, and I understand the powerful reasons that made it necessary under the circumstances.
The nations of the free world are united in their determination to keep the international monetary system strong.
The United States will continue to meet its international monetary responsibilities. I reaffirm unequivocally the commitment of the United States to buy and sell gold at the existing price of $35 an ounce.
The British have worked hard over a number of years to correct their trade deficit. It has now become clear to the British authorities and the International Monetary Fund that the United Kingdom was faced with a fundamental imbalance which called for an adjustment in the exchange rate. This has now been carried out in accordance with the regular procedures of the International Monetary Fund.
I believe the United Kingdom will--at the new parity--achieve the needed improvement in its ability to compete in world markets. The attainment of equilibrium by the United Kingdom will be a healthy and constructive development in international financial markets.