Is now a good time to buy the euro?

Covered End

I'd be looking to get drachma's if I were you.

Presume you're joking, as not available. As and when the drachma does make a comeback, the value will plummet from day1 .

Valiantphil

I bet a not insignificant amount of euros in Greece are from another country. Are you saying there will be a two tier system whereby if they had euros from their holiday in France or if the 10,000 euros they have that happened to be printed in Germany they can buy more goods in the shops than with their euros? I work for large corporate and private foreign exchange company that also has a retail and am sure the branch networks would have stopped accepting or stocking 'Greek' euros. As for the rate, well as staff< I get the London sell rate when buying so todays rate for me would have been 1.359

There is no clear set of rules for the exit from the Euro, as this was obviously never envisaged.

So there is lots of guessing going on, but thinking logically If I paid for drinks in a pub with IOU's and then left the country - would you accept those IOU's in change when buying drinks with cash.

Germany has been buying the drinks in the Euro pub for a decade while other countries supped booze and promised to get their round in due course - which they did, using money borrowed from Germany.

So, some watchers expect the ECB to point holders of Greek printed Euros in the direction of Athens to get them changed into Drax - which will be almost worthless.

Why take the chance ?

stilladdicted

I don't think it's that clear as to who has the upper hand. About 20% of Greeks are suffering from austerity measures the severity of which are totally unknown to us. Even in our bad times, we still had the NHS. If Germany continues to demand such punishing austerity from the Greeks, and the Greeks continue to say we won't do it, then Germany will fear that a Greek exit will light the powder keg. The European banks are highly vulnerable and Germany has some of the weakest banks. It's a dangerous game of brinkmanship which is benefitting no-one as far as I can see.

mart77

What would actually happen if the Euro collapsed?
I owe someone 1200 euros for the balance of a holiday. I could pay now but I'm worried that I might end up losing out if things go down the tubes.

davy macaddick

I wen to Spain last week for 5 days and got 1 - 1.7euros, now have returned with around 450euros to be told each one is worth 1.1euro!! so will be saving them for my next trip!!