Wednesday 15th July 2015
In a new twist to the ongoing Greek saga, last night the IMF released a statement saying that they don’t think the proposed bailout goes far enough.
Effectively, this is a warning that the IMF will not take part in any rescue package for Greece unless the other EU creditors agree to much more debt relief than planned. This is a huge complication, and the amazing fact is everyone involved in the negotiations knew the IMF's position, but just ignored it.
Ignoring things doesn't make them go away, and the stunning developments means that the Euro has weakened even further, as nobody knows if this on-going issue is actually ever going to be resolved or not.
The effect on the currency markets is a Euro that’s getting even weaker. The GBP/EUR reached €1.4240 this morning, before some poor UK employment numbers pulled it back down to the €1.42 mark as the graph below shows:
What does all this mean for the Euro?
It means that even if the Greeks agree to the plan today, it’s likely that the whole package agreed may now need to be re-negotiated, so in effect tomorrow morning we may well be back at square one. What an absolute mess this really is. The banks are still shut. They probably won’t open again for another month until an actual package is re-negotiated and ratified, so the ‘solution’ that came on Monday seems to be nothing of the sort.
Result - GBP/EUR getting even higher.
Getting the best exchange rates
These are very uncertain times, and having a good currency broker on your side can save you a lot of money if you are converting a large sum. Therefore if you want to get the best possible exchange rates, contact me for a quote.
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