• Short Summary

    NEWS OF THE FRENCH GOVERNMENT'S SUDDEN ANNOUNCEMENT THAT THE FRANC WAS DEVALUED BY 12 1/2 PER CENT AGAINST THE UNITED STATES DOLLAR (11.11 PER CENT AGAINST FINE GOLD) WAS GENERALLY GREETED IN FRANCE TODAY (9 AUGUST) WITH CALM AND SYMPATHY.

  • Description

    NEWS OF THE FRENCH GOVERNMENT'S SUDDEN ANNOUNCEMENT THAT THE FRANC WAS DEVALUED BY 12 1/2 PER CENT AGAINST THE UNITED STATES DOLLAR (11.11 PER CENT AGAINST FINE GOLD) WAS GENERALLY GREETED IN FRANCE TODAY (9 AUGUST) WITH CALM AND SYMPATHY. BUT FRENCH HOUSEWIVES FACE HIGHER FOOD BILLS IN FUTURE, IN A COUNTRY THAT ALREADY HAS ONE OF THE HIGHEST COSTS OF LIVING IN EUROPE.

    AUGUST IS THE MONTH IN FRANCE WHEN EIGHT OUT OF TEN PEOPLE ARE ON HOLIDAY, AND FOR MOST OF THEM, INCLUDING PRESIDENT GEORGES POMPIDOU, IT WAS 'HOLIDAY AS USUAL'. BUT THE DEVALUATION CAME AS A PLEASANT SURPRISE BONUS FOR THOUSANDS OF FOREIGN TOURISTS IN FRANCE, WHO FOUND THEIR CURRENCIES WORTH ONE-EIGHTH MORE OVERNIGHT.

    THE FIRST ESTIMATE BY ECONOMIC EXPERTS WAS THAT THE OVERALL COST OF LIVING IN FRANCE WOULD RISE BY BETWEEN ONE AND 3.5 PER CENT.

    AS THE COUNTRY TOOK STOCK OF THE DEVALUATION TODAY, THERE WAS NO SIGN THAT SHOPKEEPERS WERE RUSHING IMMEDIATELY TO RAISE THEIR PRICES, NOR DID PEOPLE APPEAR TO BE STOCK-PILING FOREIGN GOODS BEFORE POST-DEVALUATION PRICE RISES ON IMPORTS COME INTO EFFECT.

    IN THEORY, ONLY IMPORTED GOODS WILL GO UP BY THE EXTENT OF THE DEVALUATION BUT THE BIGGEST DOUBT IS ABOUT FOOD PRICES. BECAUSE OF THE WAY THE COMMON MARKET AGRICULTURAL PRICE SYSTEM WORKS, FRENCH FOOD PRICES COULD RISE BY THE FULL EXTENT OF THE DEVALUATION.

    NOW THE GOVERNMENT IS PLANNING A SERIES OF AUSTERITY MEASURES, WHICH WILL BE 'RIGOROUS AND VIGOROUS', ACCORDING TO PRESIDENT POMPIDOU, TO BACK UP DEVALUATION.

  • Tags

  • Data

    Film ID:
    VLVA4CIMODB4HAR9C1PMNHR2JPOQT
    Media URN:
    VLVA4CIMODB4HAR9C1PMNHR2JPOQT
    Group:
    Reuters - Including Visnews
    Archive:
    Reuters
    Issue Date:
    09/08/1969
    Sound:
    Unknown
    HD Format:
    Available on request
    Stock:
    Colour
    Duration:
    00:01:33:00
    Time in/Out:
    /
    Canister:
    N/A

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