With the instability with the Cypriot issue and banks having been closed for over a week on the island there are plans in place to re-open the banks by tomorrow. We have seen the GBPEUR exchange rates improve by almost 2% over the week since the problems in the Cyprus and more bad news could still come. With the Cypriots having agreed to remove the levy on bank customers with less than €100,000 deposits the majority of the island is breathing a sigh of relief but with the wealthy negatively affected this could have a knock on effect on the rest of the economy over the next few weeks.
Revised UK GDP figures were released earlier this morning showing -0.3% for the quarter on quarter period and having come in line of expectation we have seen little movement for Sterling. It appears as though the currency markets and in particular the Euro exchange rates are waited with bated breath to see the fallout of what may happen when the Cypriot banks re-open tomorrow. Personally, if i had my funds in Cyprus I would think about moving them out of the island as if things change again this could affect your deposits.
There are proposed limits on cash withdrawals and limiting amounts of Euros that can leave the country so if you’re thinking about selling Euros from Cyprus it may be worth consulting your bank to find out what limits have been set.
Some analysts think that the Cypriot issue is an isolated case but the question is could this issue have created a dangerous precedent for other countries within the Eurozone. If you are thinking about selling Euros and want to ensure you are getting the best exchange rates feel free to contact me directly Tom Holian firstname.lastname@example.org
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