The effect of the gold standard crisis on the foreign exchange business of Barclays Bank (DCO) in South Africa

Abstract

Great Britain officially abandoned the gold standard on 20 September 1931. As the South African economy was closely linked to that of Britain, it was generally assumed that South Africa would follow suit. The South African government, however, decided to remain on the gold standard. The decision to adhere to the gold standard while the majority of the world's economies abandoned it, caused immediate problems for South Africa. One of the areas most affected by South Africa's adherence to the gold standard, was foreign exchange.