FXStreet (Edinburgh) – Currency Analyst at BTMU Lee Hardman assessed the current scenario of EU-Greece debt talks and the possibility of further decline in the single currency.
Key Quotes
“A failure to reach an agreement by the end of the week before the current bail-out programme expires and a EUR1.6 billion repayment to the IMF is due would increase the likelihood that capital controls will soon need to implemented in Greece as deposit flight from Greek banks would likely accelerate”.
“Escalating developments would likely test the current resilience of the euro which remains largely unaffected so far, potentially prompting increased selling pressures in the near-term”.
“According to reports from Reuters, EU officials have stated that the only way to fund next week’s IMF repayment was for euro-zone governments to hand over to Greece nearly EUR2 billion in profits from ECB holdings of Greek government bonds”.
(Market News Provided by FXstreet)