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British pound exchange rate
Fact 1 - NAV (Trust's net asset value) is figured out each business day by the Trustee. The cash (British Pound Sterling Deposits) as the purposes of NAV calculation are translated according to the Noon Buying Rate. It is the rate of U.S. dollar ("USD")/ British Pound Sterling exchange which is set as well as published by the Federal Reserve Bank of New York. That is done at 12:00 PM (New York time), the time when NYSE (New York Stock Exchange) opens for trading operations daily.
Fact 2 - In the period from 1956-1971 a lot of developed countries within the United Kingdom managed to keep a fixed exchange rate system with the gold or US dollar. In 1971 problems caused by limited gold supply appeared again. And in 1973 the system was destroyed when the most major countries refused from the par value system. Than several countries generalized floating of exchange rates, and it caused large instability in currency markets. As it was expected, the Malawi currency devalued together with the devaluation of the British pound to which it was pegged. After this authorities started to think how to manage the exchange rate.