http://www.dailymail.co.uk/news/arti...=feeds-newsxml
Something to bear in mind for anyone here who has a stack of Euro notes
Saw this report in the Mail Online....
what a bloody stupid thing for an MP to say. as if small amounts of euros held by british holiday makers have any significance. what a moron!
For anyone who wishes to spend any Cypriot Euros they may have first.
Where do my euros come from? The code breaker
The 11 digit serial number on every note begins with a prefix which identifies which country issued it.
German notes begin with an X, Greek notes start with a Y, Spain's have a V, France a U, Ireland T, Portugal M and Italy S.
Belgium is Z, Cyprus G, Luxembourg 1, Malta F, Netherlands P, Austria N, Slovenia H, Slovakia E and Finland L.
As we all know, time is running out. Greece has only until 30th June to repay their debt. Once the debt is paid there are larger funds waiting to be issued. It comes down to more belt tightening for the poor Greeks, or an even worse situation, with the debt remaining.
When are the rich Greeks that escaped taxation going to re-finance their country?
There isn't anything specifically documented on the ECB site, but this appears to be a complete myth (perhaps not surpising from a fervant anti-EU MP).
All Euro notes are legal tender through the Euro zone - they could hardly invalidate them all and impact people across the continent who probably got them perfectly validly from their own bank. It would make even less sense when a high proportion of the notes in Greece itself wouldn't have been issued there.
There's a slightly more balanced article here:
The issuing institute is the ECB only. But they have been printed in different countries. That's all.
Should Greece really exit from the Euro, the existing notes will not suddenly become Drachmas or anything, but there will probably be a surprise announcement followed by a transition period during which the old and new currency can be used side by side, and bank accounts etc will be transferred to the new currency and bank withdrawals will only be possible in the new currency, thus gradually phasing out the old. There will of course be a mad rush as the people of Greece seek to hoard Euro banknotes.
This is much the inverse of what happened when Greece (and other countries) joined the Euro. First the excahnge rates were frozen and then the new denomination was rolled in as a 1:1 replacement of the old. An exit would be the opposite. First roll in the new currency at a fixed exchnage rate basis basis and when there is sufficient of it in circulation, remove the parity and let it float (or sink)
so much for "single currency".... I feel for the ordinary, honest Greek person who must be under yet more stress.
Do we think that the Euro will fall against the CHF as a result? And if Greece steps/gets pushed out who will follow?
As the Chinese say "may you live in interesting times"
I was always under impression that the UK uses £. Why would all these tourists bring Euros to the UK anyway, mind boggling. Perhaps to switch to new currency and resent it together with Greece?
It's most likely the opposite. With Greece out of the eurozone, EUR will surge (power of the weakest link and so on). This is the real threat to the EU economy, as they need EUR to remain week against other currencies. That's also most likely why they are forcing Greece to stay.
I'm not sure if anybody cares about the collateral - over the years, private institutions had plenty of time to get out of Greek bonds and limit their exposure. The load is on ECB and IMF ... taxpayers will cover that.
I think you're both potentially right.
Initially, in the wake of a Grexit, I think the Euro will fall as the markets will be spooked about the Euro's stability. When things have settled down again then I believe that the Euro will not only recover, but also gain in value as the Euro will no longer have a partner that's dragging it down.
The problem with weakest link: Once the weakest link is gone, there is a new weakest link. And they may go SIP by SIP.
I think that most rich Greeks who can will already have brought their money into safety by now so I'm not expecting the pressure on the CHF to be that great.
I expect other nations will be holding their breath and watching Greece. If a return to their own currency sparks an economic recovery (which is entireyl possible seeing they will be able to control their own interest rates) then others may wish to move to do the same. But first of all they'll be watching and waiting.
yup. this little PIIGSy went to market...
So for someone looking to sell CHF and buy euro, your advice is........?
I'm really, really trying to understand what on earth is being said by the MP here. Is he arguing that paper money you are holding will magically turn into drachmas if the fit hits the shan? Or that checkout people will look at notes printed by Greece as though they have been contaminated by Greek-ness and you won't be able to spend them? It really seems like he is worried about actual cash, here. This has to be some kind of urban legend he has been taken in by.
Yeah, if you have money in a Greek bank account, that might be a very different story, but how earth would this matter to your cash on hand even in the slightest?
I'm planning to have a stamp made with some random Greek letters on it and the words "Hellenic reserve note" underneath and stamp it on my Euros, spend them on my next trip to Germany and watch panic ensue.
the panic as you realise that nobody will accept your euros and you've made them worthless?
Don't waste you're energy on that. John Redwood, the MP in question, has proven himself many times in the past to be an absolute moron that's complete out of touch with anything going on on planet Earth.