Wilson Defends Sterling Devaluation as Britain Breaks Free

In November 1967, British Prime Minister Harold Wilson defended his government's decision to devalue the pound sterling in a nationwide broadcast. The move came after weeks of speculation and economic turmoil, including the Six-Day War in the Middle East, the closure of the Suez Canal, and a domestic dock strike.

The government had fought for three years to maintain the pound's position, but was ultimately forced to lower its exchange rate from $2.80 to $2.40, a cut of 14.3%. This decision was seen as a necessary measure to address Britain's balance of payments deficit and stimulate exports.

In his broadcast, Wilson emphasized that devaluation did not mean the pound in people's pockets had lost its value. He argued that the move would allow Britain to sell more goods abroad on a competitive basis and break out from the 'straitjacket' of previous economic policies.