Greek Euro Exit

[jennyc]

There is talk yet again about the Greeks exiting the Euro, yawn yawn but as I am due in Haraki 5th September, yipee, I thought I best take a little more notice than normal!

Bob, you kindly explained how you thought things would be if this did happen whilst we were there but I think it was on the old site. Could I ask you again to give us your thoughts. Was thinking of taking all euros from the UK and no travellers cheques but now I don't know what to do. Of course this may just be the papers looking to fill space, nothing to report on now the Olympics are finished LOL

Thanks

[Bob]

Hi Jenny,

Below is the earlier post but that was more about if the election went in the opposite direction to the way it did. Right n ow things seem a little more stable, there was a mini emergency slated for yesterday when a bond had to be repaid but they issued some more bonds (i.e. borrowed some more money) a few days ago which headed that one off at the pass.

Whatever happens if you take euros in small denominations, even if they exit while you are there, which is less likely than it was back in June, then you should be fine.

"Below is just my understanding of things.
If (and it's a big IF) Greece exits the euro, and if you happen to be
there at the time, then the best thing to have with you is cash in
euros and in small denominations.
If it happens, the Greek banks will stop issuing ordinary euros. Most
likely they will issue the ordinary euro notes but they will be over-
stamped to say that they have been issued in Greece. So when the
Greeks go to their banks and withdraw some money they will get these
funny euros. If they write a cheque for say 100 euros then they will
get 100 funny euros, so one-for-one. The trouble is the rate will only
be one-for-one in Greece. The international money markets will
immediately down value the funny money. So all of a sudden everything
the Greeks buy from overseas (oil for example) will rocket in price.
So if we are on holiday in this transition period we will go along to
the ATM or go and cash some travellers cheques and we will get . . . .
funny money. Our money has suddenly become worth a fraction of what it
was. Same applies if we pay for something that costs ten euros with a
fifty euro note – we'll get change in funny money. It's unlikely that
anyone will want to accept credit cards as payment, they'll want your
proper euros, and if you have them you'll be very popular. Cash will
become king.
The way to protect yourself is to take cash in euros and small
denominations.
Once the transitional period has passed there shouldn't be a problem
(well not with holiday money anyway). The funny money will become 'new
drachmas' or whatever and a a proper exchange rate will be established
which we will know in advance so, just like it used to be with
drachmas."

Bob.

[jennyc]

Thank you Bob, off to get Euros in small demominations.

[rockinbaz42]

Took the words right out of my mouth Bob..I'm taking nearly 100% cash in euros with a bit of sterling just in case...Which is what I always do...so see you in just over a week Bob

[Bob]

Just over 2 weeks for us Barry. Look forward to seeing you both.

B&J.