Best Exchange Rate for Euros: How European Debt May Affect You

March 13th, 2012

The best exchange rate for Euros can always be achieved at Best Exchange Rates UK, foreign currency has been at the height of conversation recently as Greece struggles to gather funds to avoid a debt default, but how does this affect us in the UK? This article aims to explain.

The best exchange rate for Euros is always desirable but even more so when we are living in a time of global recession, If Greece were to default on their debt repayment in March the largest affect would be on other countries that are part of the Eurozone; the 17 countries that have the euro as their currency including Ireland, Germany, France, Italy and Spain just to name a few. The problems for the Eurozone began as a result of countries borrowing and spending too much since the global recession, since May 2010 Greece, Portugal and Ireland have all taken multi-billion pound bailouts as a result of their over spending, however this has not solved the problems in Greece.

If Greece is unable to keep paying what it owes to the rest of Europe, the country will effectively go bankrupt, this could have a huge effect on foreign currency exchange rates. It would also make life even harder for Greek people, who would feel much poorer economically as their money, Euros, would not be worth as much. Other governments in the Eurozone countries like Ireland and Portugal would have to pay more to lend money and might have to raise taxes and cut spending to balance the books.

Luckily for us in the UK we opted out of joining the euro, however some British banks have lent money to Greece and would effectively lose billions if the country went bankrupt, if this happens it could cause another ‘credit crunch’ making it difficult for businesses and individuals to borrow money for loans and mortgages. Another way in which the UK maybe affected is through overseas trade as those businesses in the rest of Europe may have financial difficulties which may have a knock on affect over here in the UK. If you are looking for the best exchange rates for euros visit us at Best Exchange Rates UK.