This led to progressive pressure on the currency, up to a breaking point forcing the British government to devalue.
Australia, Burma, Ceylon, Denmark, Egypt, Finland, Greece, India, Iraq, Ireland, Israel, Netherlands, New Zealand, South Africa and Sweden all also devalued their currencies by 30.5%.
France, Portugal, Belgium and Canada devalued their currencies slightly less than did the UK.
According to Larry Elliott (economics editor of The Guardian), the devaluation "highlighted Britain's diminished world status".
[6] The devaluation also laid the ground for negotiations that would lead to the European Payments Union (EPU).