United States President Richard Nixon called an unusual and unscheduled meeting of his economic chiefs on Friday (2 March) to stress that the United States would not devalue the dollar again.
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SCU Nixon speaking (SOUND)
"Devaluation. I would say we are going to continue our programme of fiscal responsibility so that the dollar will be sound at home, and we trust as well, abroad. And we also are going to continue our efforts to get the other major countries to participants more with us in the goal that we believe us should all achieve which we sat out at the time of this and other agreements, and that is at getting an international monetary system which is flexible enough to take care of these what I believe are temporary attacks on one currency or another."
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The following is the text of an extract of President Nixon's speech on the currency crisis, which is included in this film.
Script is copyright Reuters Limited. All rights reserved
Background: United States President Richard Nixon called an unusual and unscheduled meeting of his economic chiefs on Friday (2 March) to stress that the United States would not devalue the dollar again.
After his meeting, he told a news conference that the United States dollar was a sound currency, and that it would survive the rash of international speculation.
The United States has already devalued twice in 14 months, concluding with an 18 per cent cut on 12 February, in an attempt to boost its foreign trade prospects, and to reduce its giant balance of payments deficit.
But even as President Nixon tries to put a halter on speculation, the rush to sell against the dollar continues, and so does the closure of international money markets. Most West European markets closed on Friday.
SYNOPSIS: The great United States dollar is again the focal point of an international currency upheaval. As the world-wide rush to sell against the dollar continued, its weakness closed down more international money markets. But President Nixon emphasised on Friday that the dollar would not be devalued.