Risk is back on

Currency Calculator App

In the early hours of this morning the Euro zone leaders failed to find a decisive remedy to the region’s debt turmoil. Instead they merely produced the third leg of what was supposed to be a three part rescue plan.

In a summit that lasted for 10 hours another a few key agreements were struck, they boosted the overall rescue fund to 1 Trillion Euros providing more financial firepower in the fight to stop contagion in the Eurozone. Ireland, Portugal and Greece have already been helped by the fund and now it is hoped the increased size will enable Euro leaders to stop contagion engulfing the Spanish and Italian economies.

Other positive actions came in the form of a deal with private banks to accept a loss of 50 percent on the Greek government debt that they hold, however Greece’s debt to GDP ratio is projected to be 120% by 2012. They also insisted on the recapitalisation of Banks by June 2010. €106 billion will need to be raised first from the private sector then National Governments and then the European Financial Stability Facility (EFSF).

“If the euro fails, Europe will fail”; very bold words from Merkel. If Europe fails what will be the knock on affect to the UK and the overal global economy? Her plan to boost the EFSF was agreed in order to stop a collapse of confidence in the euro. Details of the plan will be discussed on Saturday but a final decision is not expected until November.

The overall deal has been viewed by some as not ambitious enough and markets will not stabilise until the fine print is agreed. These new measures seem to only buy the Eurozone time.

EUR buyers instead of hoping for a better time to buy, the EUR was temporally supported as markets have reacted positively to the announcement with Euro stocks higher and the Euro trading above €1.40 against the US Dollar.

To get more information about the markets and to find out how you can save time and money when exchanging your money contact Moneycorp on +44 (0) 20 7828 7000. You can also send your enquiry by email on comparemoneytransfer@moneycorp.com.

Company Details

Risk is back on

Get a quick quote

Open Account with Moneycorp

Moneycorp are located at:
The Zig Zag Building, 70 Victoria Street, Greater London, SW1E 6SQ, United Kingdom

Get a Quick Quote

Newsletter Signup to CMT

Sign up to our foreign exchange newsletter to receive news updates directly by email

Compare Money Transfer will not Share your details!

Bank Exchange Rates Comparison

High St Bank Exchange Rate

All Rights Reserved: Copyright 2006 - 2018 Compare Money Transfer Limited offering FCA Regulated Suppliers - 34 New House, 67-68 Hatton Garden, London, EC1N 8JY. +44 (0) 843 357 4882