Hot answers tagged currency
I think the loss of British Empire about that time had something to do with that. If you have fiat currency, valued primarily on the perception of your total assets, and you loose a large portion of those assets, you'd better voluntarily adjust your exchange rate or face devaluation due to loss of trust in your currency by other players.
The £ symbol is just a shorthand for pounds sterling, and it was in use in all of the colonies. Almost all of the "official" documents such as treasury notes, government transcripts, title transfer documents, etc. spell out the word "pound" as a matter of convention or formality. Take a look at a current U.S. bill, and you will see that the same convention ...
This is a fascinating question. There are short, simple answers: The great devaluation of 1949 - 30% Post war, Britain was heavily indebted to the USA. Despite a soft loan agreement with repayments over fifty years, the pound remained once again under intense pressure In 1949 Stafford Cripps devalued the pound by over 30%, giving a rate of $2.80 ...
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