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€uro

Postby peter » Mon Mar 18, 2013 11:55 am

The bailout of Cyprus banks proposes a one off seizure of customer deposits of 6.5% up to €100,000 and 9.9% on those over €100,000 with the rather feeble compensation of bank shares.

Cyprus is in chaos, cash machines are empty and all bank transactions have been halted since Friday. Today is a bank holiday and pundits reckon banks will have to stay closed tomorrow.

Obviously a concern for Cypriots including many expats. The worry is that it could trigger a run on banks in other troubled states - Greece, Italy, Spain, Portugal, etc. The €uro has lost ground in todays trading and European stock exchanges are down.

This sounds like the sort of action class warrior Hollande may consider ?
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Re: €uro

Postby graham34 » Mon Mar 18, 2013 5:56 pm

Perhaps I should consider opening a euro bank account in Germany.
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Re: €uro

Postby peter » Mon Mar 18, 2013 8:13 pm

Seeing sense ?

Banks in Cyprus will remain closed until at least Thursday while talks continue over controversial plans to put a levy on savers' deposits.

The news that bank accounts face a one-off tax to help fund the country's bailout saw depositors rush to cash machines, which soon ran out of funds.

Politicians want to finalise the bailout terms before banks re-open, as fears mount of a bank run.

Plans for a levy unnerved investors, sending shares and the euro lower.

Cyprus's banks were closed on Monday for a Bank Holiday, and the country's central bank said they would now remain shut until Thursday at least.


http://www.bbc.co.uk/news/business-21823432
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Re: €uro

Postby peter » Mon Mar 18, 2013 10:44 pm

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Re: €uro

Postby peter » Tue Mar 19, 2013 12:24 pm

The Euro is weakening due to concerns about the Cypriot bail out plan. If anyone needs to sell significant quantities of Euro in the immediate future, it would make sense to consider booking a forward contract.

http://www.currenciesdirect.net

Commentary from Currencies Direct :

Cyprus dominates markets
19 March 2013
In Asia trading the market move was driven from the ‘fear gauge’ spiking in the wake of increased risk aversion. Follow through looks limited, however. Investors seem calmer as the fear following the news of levy of bank deposits in Cyprus as part of a €10billion bailout for the country, eased. No sign of bank runs elsewhere in the Eurozone and the go ahead to make the deposit levy more progressive (ie a higher levy on bigger deposit holders) while retaining the total amount at around EUR 5.8 billion, have helped to calm pressures.

Nevertheless, today’s delayed vote in Cyprus’ parliament to authorise the levy could incite more tension particularly as the result is too close to call. Therefore the spot light will remain firmly on developments in Cyprus, with economic data taking a back seat. The highlights on the data front include likely gains in the German March ZEW investor confidence survey and US February housing starts and building permits.

Currency volatility appears to be restricted ahead of the Cyprus vote and then the Fed FOMC outcome tomorrow. The Single European currency remains the weakest link, with gains in the currency likely to be sold into although support around EUR/USD 1.2876 is likely to hold if the Cyprus vote flops to recommend the deposit levy. If this is the case, expect further sharp pressure on the Euro and a much bigger drop in the currency and risk currencies overall. European and Cyprus officials would have to return back to discussions but during the period of uncertainty panic would arise.

The Reserve Bank of Australia minutes released overnight maintained that the door remains open for further policy rate cuts although they did note that the economy is responding to previous cuts with the impact having further to run. There is little in the minutes to suggest further easing is imminent. The RBA minutes are unlikely to dent the Aussie which remains buoyant having managed to remain well supported even despite the Cyprus panic.
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Re: €uro

Postby peter » Tue Mar 19, 2013 4:57 pm

Seems the Cypriot PM cannot get a majority for the original proposal and is buying time to renegotiate terms.

Latest : http://www.nytimes.com/2013/03/20/busin ... .html?_r=0
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Re: €uro

Postby peter » Mon Mar 25, 2013 9:00 am

Cyprus avoided bankruptcy, and potential turmoil across the eurozone, by securing a last-minute 10 billion euro ($13 billion) bailout with promises to sharply cut back its oversized banking sector and make large bank account holders take losses to help pay much of the bill.

Negotiations into early Monday ended with approval of the deal by the 17-nation eurozone's finance ministers. The European Central Bank had threatened to cut off crucial emergency assistance to the country's banks by Tuesday if no agreement was reached.

Without a bailout deal by Monday night, the tiny Mediterranean nation would have faced the prospect of bankruptcy, which could have forced it to become the first country to abandon the euro currency. That would have sent the region's markets spinning.
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Re: €uro

Postby peter » Mon Mar 25, 2013 6:06 pm

The aftermath is that the Euro is looking quite insecure. If deposit holders in Cyprus lose 10% or 20% or 30% or 40%, this could happen elsewhere. This will hurt two ways :

1) Deposits in Greece, Portugal, Spain, followed by others will be moved out of the Euro area. In some countries we could see runs on banks.
2)Institutions will not buy euro and the currency will weaken

The rate is currently £1 = €1.181

Chart : http://www.xe.com/currencycharts/?from= ... UR&view=5Y
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Re: €uro

Postby peter » Thu Mar 28, 2013 8:47 am

The Cyprus situation means that currency markets are still jittery about the Euro.

Although the Bank of England has stated they intend to let the £ drift lower as a means of improving exports, the Euro is losing more ground and the pound is gaining against the Euro.

This mornings rate was £1 = €1.185

Latest position in Cyprus :

Security is tight in Cyprus as banks prepare to reopen nearly two weeks after closing. Armed police were on guard as lorries loaded with cash arrived at the central bank on Wednesday night. Demonstrators took to the streets to protest against the bailout plan and strict capital controls. Cyprus is the first eurozone member country to bring in capital controls. Customers will be limited to withdrawing 300 euros ($383; £253) a day, to prevent everyone fleeing with their savings.

Controls are :

Daily withdrawals limited to 300 euros
Cashing of cheques banned
Those travelling abroad can take no more than 1,000 euros out of the country
Payments and/or transfers outside Cyprus via debit and or credit cards permitted up to 5,000 euros per month
Businesses able to carry out transactions up to 5,000 euros per day
Special committee to review commercial transactions between 5,000 and 200,000 euros and approve all those over 200,000 euros on a case-by-case basis
No termination of fixed-term deposit accounts before maturity


More on Cyprus : http://www.bbc.co.uk/news/business-21963462

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Re: €uro

Postby gurubarry » Thu Mar 28, 2013 12:02 pm

You will need a suitcase of Euros to buy your Horsemeat and condemned mutton now! :blackeye:
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Re: €uro

Postby Las-Cobas » Thu Mar 28, 2013 10:04 pm

gurubarry wrote:You will need a suitcase of Euros to buy your Horsemeat and condemned mutton now! :blackeye:


Lidl have special offers for OAP's this week, hoof along to your nearest guruB, and stop horsing about! the exchange rate is good ! 1x Cypriot pound = million euro :lol: :lol:
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Re: €uro

Postby gurubarry » Fri Mar 29, 2013 2:38 pm

:lol: :lol: :lol: :lol:

I'm into Flagellation, Necrophillia and Bestiality ....Am I flogging a dead horse ? :bigsmurf:
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Re: €uro

Postby peter » Tue Apr 02, 2013 3:30 pm

The Bank of England's new Prudential Regulation Authority (PRA) has announced that all those whose accounts are in credit will be automatically moved to Bank of Cyprus in the UK.

This means that up to £85,000 of their deposits will be protected under the UK compensation scheme.

Laiki customers in Cyprus face losing much of their money above that amount.

It follows the country's bail-out deal with the European Union, under which customers with more than 100,000 euros in their accounts face a levy of up to 60% on the remainder of their deposits.

Continue reading the main story

Start Quote

This is a good thing for customers ”

Bank of England spokesperson
But 15,000 Laiki customers with an estimated £270m in their accounts in the UK are being told their money is safe.

More : http://www.bbc.co.uk/news/business-22000779
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Re: €uro

Postby peter » Tue Apr 02, 2013 3:31 pm

Currently 1 GBP = € 1.179
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Re: €uro

Postby peter » Thu Apr 04, 2013 4:51 pm

Latest on Cyprus ...


The amount of bank deposits above 100,000 euros that will be kept back has still not been decided

Cyprus has agreed to a set of measures that will release a 10bn-euro (£8.5bn; $12.8bn) international bailout. The International Monetary Fund (IMF), which is contributing 1bn euros, says they are "challenging" and will require "great efforts" from its population. They will mean a doubling of taxes on interest income to 30% and a rise in corporation tax from 10% to 12.5%. The plan, designed to stabilise the banking system and government finances, was agreed in principle last week.

Cyprus's new finance minister Harris Georgiades, speaking on his first day in the post, said he was determined to honour the country's commitments: "The responsibility is great, and the expectations of our citizens greater. Our promise is that we will make every effort for what is best for the nation. Under your guidance I am sure we will succeed." His appointment followed the resignation of Michalis Sarris on Tuesday.

The plans for the two largest banks, Bank of Cyprus and Laiki, are especially controversial in Cyprus, as they will involve heavy losses for depositors with large balances in their accounts. The IMF, which is providing 10% of the bailout money, said 95% of account holders would be protected. The majority of accounts have less than 100,000 euros in them, which will not be affected. However, depositors with more than 100,000 euros will lose some of their savings. Although the exact amount has still not been decided, reports have said they could lose up to 60%. Cyprus agreed last week to shut down Laiki and transfer deposits of under 100,000 euros to Bank of Cyprus.

Restrictions on the amount of money that can be withdrawn daily are still in place. At present, there is a daily cash withdrawal limit of 300 euros and a cap of 1,000 euros on the amount that can be taken out of the country. Mr Georgiades said the restrictions would be lifted ``gradually'.'

Cyprus is in recession, with unemployment at around 15% and gross domestic product (GDP) down by 3.5% this year. The country is already planning to introduce austerity measures equivalent to 5% of GDP between 2013-15 through tax rises and spending cuts, but Ms Lagarde said further measures were needed. She said the corporation tax increase and raising of the tax on interest rates to 30% would help bring in another 2% of GDP. In order to tackle its debt, additional cuts worth 4.5% of GDP would also be needed over the medium term to reach the target of a budget surplus of 4% of GDP by 2018, the IMF said.

The country's President, Nicos Anastasiades, warned there would be "difficult days ahead" that demanded a collective effort. The IMF said the reform programme would also lead to changes in banking supervision and transparency. Cyprus's banking system has been seen by some as a haven for firms, particularly Russian businesses, who wish to avoid close scrutiny of their affairs.

The IMF said that the international rescue effort, which also involves the European Union (EU) and the European Central Bank (ECB), would be "well paced". The IMF's contribution will need to be ratified by its board in the coming weeks. A spokesman for the European Commission, Olivier Bailly, said the bailout would also need parliamentary approval from several of Cyprus's eurozone partners.
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Re: €uro

Postby peter » Mon Apr 15, 2013 11:41 am

£1 = €1.172
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Re: €uro

Postby peter » Tue Apr 16, 2013 3:25 pm

Today £ = €1.165
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Re: €uro

Postby peter » Thu Apr 25, 2013 11:19 am

The Euro continues to be feeble and has gradually lost ground to the £.

The news today that UK was technically not in recession has strengthened sterling which is currently £1 = €1.181

I've received this from a London trader :

“Quick update

Just had GDP figures out, positive data at 0.3% - better than expected.
We’ve seen GBP-EUR shoot up from 1.173 to over 1.18 and its continuing to push. Also GBP-USD has pushed well above 1.54 from just below 1.53”


The BoE has stated that they prefer a weak pound to help exports, and they will be watching events in euroland very closely as the ECB is widely expected to cut rates at next week’s monthly meeting in the face of increasing poor economic data.

The current rate may not hold, so people needing to buy euros should probably try and take advantage of the slight improvement.
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Re: €uro

Postby peter » Fri Apr 26, 2013 10:53 am

£1 = €1.186 today ...
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Re: €uro

Postby peter » Fri Apr 26, 2013 10:54 am

£1 = €1.186 today ...
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Re: €uro

Postby gurubarry » Fri Apr 26, 2013 2:21 pm

Thanks Peter ....rushed in and paid for our holiday ....woman thought I was crazy until I explained the euro v pound situation ...all went well until I mentioned your name ! :D :D
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Re: €uro

Postby peter » Fri Apr 26, 2013 4:01 pm

I hope you are joking !
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Re: €uro

Postby gurubarry » Fri Apr 26, 2013 10:31 pm

:P :P ...just the last bit .....
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Re: €uro

Postby peter » Wed May 01, 2013 2:50 pm

The pound appears to be weakening against the GBP

GBP1 =

May 1, 2013 1.1780
Apr 30, 2013 1.1861
Apr 29, 2013 1.1871
Apr 28, 2013 1.1871
Apr 27, 2013 1.1872
Apr 26, 2013 1.1794
Apr 25, 2013 1.1731
Apr 24, 2013 1.1718
Apr 23, 2013 1.1674
Apr 22, 2013 1.1665
Apr 21, 2013 1.1665
Apr 20, 2013 1.1697
Apr 19, 2013 1.1692
Apr 18, 2013 1.1652
Apr 17, 2013 1.1688
Apr 16, 2013 1.1716
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Re: €uro

Postby gurubarry » Wed May 01, 2013 9:50 pm

I heard a comment on BBCs Breakfast programme that the Govt is actively forcing down the value of the GBP to improve the balance of trade figures and promote cheaper UK goods abroad . Kills us but helps the UK . :(
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