More European Countries Devalue Their Money

Greymouth Evening Star, 22 September 1949, Page 5

More European Countries Devalue Their Money

LONDON, September 21 (Rec. 11, a.m.). —Portugal, Luxemburg and: me West German Government todky decided to devalue their currencies. Portugal has devalued the escudo by 15 per- cent, in relation to the dollar and 20 per cent, in relation to the pound sterling. The new official rate is. 28 escudos 75 centavos to the dollar, or eight escudos 50 centavos to the pound. , The Luxemburg franc will be devalued in the same way as the Belgian franc. , , The West German Government decided on plans for the devaluation of the mark to be submitted to the Allied financial advisers. Devaluation will be announced, if and when the Allied representatives agree. ' The pound sterling was quoted at 1020 francs on the Paris black-mar-ket today, compared with 1010 francs yesterday. The official rate is 980 francs.

Tourist Trade Hit

The chief of the Polytechnic Touring Association, Commander R. G. Studd, today promised that no travel associations’ tourists would be' left stranded in Europe. He estimated that 60,000 people holidaying there would have to face the “rigours of the new exchange rates,” if they had not already paid for their accommodation. He was sure, however, that devaluation would not adversely affect British holidays abroad in 1950 and later. Switzerland’s tourist industry stands to lose its three biggest customers as a result of devaluation in Britain, France and Belgium. Tourist chiefs said in Geneva that it was difficult to see how the Swiss tourist industry could survive, unless the Swiss Franc was also devalued. Swiss National Bank officials, however, denied that any devaluation of the Swiss franc was envisaged at the moment.

A Belgian Government spokesman said in Brussels today that Belgians generally would not find the cost of living affected by the franc devalua-

, tion, because Belgium’s ability to limit devaluation meant that she still held { a favourable position. Food Held Up The Associated Press Naples correspondent says that as a result of sterling devaluation 3000 tons of canned and dried fruits and nuts for Britain are held up in Naples. -. Export circles suggest that these blocked goods may be diverted to America and other countries in the dollar area. A Rome message says -the lira and Italian stocks and bonds are still holding relatively steady in the open market operations. The Communist leaders, however, are demanding a Government statement on whether Italy will revalue its currency. In Pretoria, South Africa’s Minister of Economic Affairs, Mr Eric Louw, announced that car and motor-cycle racing will be banned throughout the Union as part of the Government plan to save petrol.