BUSINESS ABROAD: Yankee Dollar, Go Home

Britain, which had to devalue its currency in 1949 to encourage the inflow of dollars, has decided that dollars are no longer needed so badly. Last fortnight the Bank of England put an end to a special inducement for foreign capital by cutting the discount rate (at which it lends money to private banks) from a relatively high 3½% to 3%. Last week West Germany's central bank followed suit. The effect was to reduce the interest that dollars (and other currencies) can earn by going abroad. At the same time, the cut meant lower interest rates on British and...

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