from Daily Mail:
Greece will leave the single currency eurozone on January 1, 2013, a senior economist at the world’s second-largest currency trading bank has claimed.
Citigroup’s Michael Saunders said Greece’s new currency would fall in value immediately by 60 per cent – and unleash a massive, yet manageable, wave of contagion across Europe.
In a note to clients, he said the likelihood of Greece leaving the euro in the next 12 to 24 months was now between 50 to 75 per cent – and assumed there would be a ‘Grexit’ at the start of next year.
The firm based its case on the belief that Greece would fail to form a government capable of implementing austerity measures after its next set of elections on June 17. This would ‘accentuate’ the stalemate between the nation and its creditors.
Mr Saunders said: ‘We assume Grexit occurs on January 1, 2013, with Greece staying in the EU and receiving external loan support [to mitigate risks of social unrest and collapse of civil society].
‘We expect that Grexit will be followed by a series of policy responses aiming to prevent a domino-style collapse of the banking system and escalating economic disruption.’
I heard from other blogs that Greece will exit on 18th of June 2012. Why would Greece leave Euro Zone? Many predicted that business bankruptcies, market turmoil, and political backlash will happen. Maybe Greece have a better idea to save their economy.
ReplyDeleteBy: exchange rates