Exchange Rate Euro: Turmoil Within Greece And The Euro

July 23rd, 2012

Lately, there has been confusion over the state of the euro, due to the current financial crisis in Greece. As the country is in heavy debt and in need of a bail out, all the countries tied to the euro are in danger from the collapse as well. These countries include Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. Andorra, Kosovo, Montenegro and many islands of the euro nations also use the euro as the common currency.

The exchange rate euro would be affected for all listed countries if Greece were to leave the currency. Certain political figures do not support the financial bailout of Greece, and favour taking on a new currency as an alternative. After years of tradition a new currency would be difficult to adopt, as constructing, producing and distributing such a high amount of cash is both time consuming and costly.

Instead, Greece would most likely refer back to when the currency used was called drachma, before the switch to the euro. The new currency would be introduced officially over a holiday, with an interim phase between the two currencies. Aside from this, the country would have to put on other limits to ensure that the introduction runs smoothly and is put in place efficiently. Citizens would not be able to draw out as much of the new currency at first, because that would jeopardize the amount of drachma available.

In a recent political election, however, those that were voted in as new political figures are supporters of the bail out and supporters of staying with the euro. The exchange rate euro will not be affected as greatly with the continued membership of Greece. The rate for the euro at the time of writing was at 0.8  compared to pounds. The exchange rate fluctuates constantly, so it is important to check it often.

More information on the euro and other currencies can be found at Best Exchange Rates UK. The site includes an array of features including business currency exchange, private currency exchange, and exchange rates for various currencies used globally. Best Exchange Rates UK includes specialists and other relevant information relating to currency.