ICAP Plc, the world's largest inter-dealer broker (one that carries out transactions for financial institutions rather than private individuals), is now Testing Trades In Greek Drachma Against Dollar, Euro
ICAP Plc is preparing its electronic trading platforms for Greece's potential exit from the euro and a return to the drachma, senior executives at the inter-dealer broker said Sunday.
By Steven Bavaria:One nice thing about free markets is that they have a way of forcing economic reality on people, whether they prefer to face it or not. That's why a return to the drachma would be good for Greece and its citizens, given their inability to face up to the hard choices that their past political and economic decisions have now presented them with.
By DeWayne Reeves:The E-Mini S&P 500 trended lower on concerns that Greece may leave the euro FX and return to the Drachma. Fitch's credit rating agency commented that if the ailing country left the EU, all the European Union countries would run the risk of downgrades. Banking concerns have been quietly preparing for the return of the Drachma. Some banks actually never really erased the currency from years ago. The problem with that would be the exchange rate and exposure of the banks with loans in Greece.
Debt-wracked Greece will face a "real nightmare" if it forsakes the euro for the drachma, its old currency, the head of the central bank said in an interview published Saturday."Any possible return to the drachma will be a real nightmare at least for the first few years," George Provopoulos told the Kathimerini newspaper.He also denied speculation of any such move, saying it would take years of preparation like the euro, which was launched a decade ago.