Britain left the gold standard in 1914 and ended wartime currency controls in 1919. The pound then fluctuated under international market pressures before the 1925 return. Inflation, trade balances and deflation are named as forces affecting its value. Restoring a fixed relationship with gold changed the basis on which those movements occurred.
Notable Point · 47:29-49:06
The pound between wartime controls and the gold standard
The currency discussion explains the floating pound that preceded the 1925 decision.