CANBERRA, 19 September 1949, 11 a.m.

UNCLASSIFIED
The following is the text of an announcement made by the Prime
Minister this morning.

'The United Kingdom Government has announced that the exchange
rate between the United States dollar and the pound sterling will
be two dollars eighty (2.80) to pound (S1).

The Australian Government has carefully considered the
implications for Australia of the movement in the sterling-dollar
rate. [2]

The Government has decided that the rate of 125 Australian to
100 Sterling shall remain unchanged.

Accordingly, the Australian pound will be devalued as against the
United States dollar in the same proportion as sterling. The new
par rate is two dollars twenty-four cents (2.24) to the pound
Australian. This will operate as from the commencement of business
today.

The International Monetary Fund has been consulted and has agreed.

The Governor of the Commonwealth Bank (Dr. Coombs) will make a
statement over the air immediately for the guidance of the banks
and the public generally. Banks will be open for business as usual
today.'