Banks are looking for new ways to settle transactions in different currencies in preparation of/if the Euro Collapses ...

01/12/2011

Orientations of the euro currency to replace the old

Baghdad - and the agencies

Preparing European banks in this time-all and what will happen in the euro area, in anticipation of a possible collapse of the European Union.

Operating financial companies, which pumps about $4 trillion a day to the European market, to test systems that enable them to deal with the trading European currencies that were used before the imposition of the euro as the currency standard.

Corporation (ICAP) global function as a mediator for e-commerce and the provision of services trade in Britain, is preparing to use the systems, electronic trading in other currencies, in an attempt to forestall the exit of Greece, probably from the euro zone and return to the use of currency drachma.

Quoted newspaper, the Wall Street Journal informed sources that the banks are looking for new ways to settle the transactions in different currencies, and conduct stress tests in preparation for the disintegration of the euro area.

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indicate the moves on the signs of deep concern about leaving more than one country for the euro, at a time in which he says, analysts and experts banks are preparing for the possibility of increasing disintegration of the euro area, in whole or in part, which is likely to return the use of currencies earlier such as the drachma, the German mark or the Italian lira.

This was a scenario far-fetched only a few months ago, but investors and analysts now say they had no choice but to prepare, even if not the application of this scenario.

While pundits will express concern about the repercussions of the financial crisis by the collapse of the euro area, including the possibility of a financial crisis a new global.

The burden of dealing with this change is largely on the inner workings of the currency market, where they will face officials currency regulations more challenging than the challenge in 2009, when they were unified European currency.

Continue European leaders in efforts to find a solution to the debt crisis, despite the fact that investors are losing confidence that they will be able to control the growing crisis.

Aknowledged by many politicians that the situation is fraught with risks Increasingly, as Italian Prime Minister Mario Monti said on Friday that the European leaders to discuss the possibility very seriously the end of the euro, recognized that the collapse of the austerity measures in Italy mean the end of the European Monetary Union, composed of 17 members.

It is due to meet leaders of the euro area again this week in an attempt to support the plans to contain the crisis of mass of growing debt, including proposals to establish a fund to save, while repeats of some policy makers, to invite the European Central Bank to make more effort to strengthen the government bond markets, where the yield on sovereign debt in recent weeks.

It is not uncommon for financial institutions to prepare for the worst-case scenario, even if the rate was likely to occur significantly.

Has been issued, analysts at Merrill Lynch, America's report suggests how it will be the reaction of the euro in the event of a break-up, and put the value of the currencies of the individual, such as the French franc and Italian lira. While the disintegration of the euro is not a basic rule in the scenario but analysts considered that it is worth consideration.

Has been issued, analysts at other banks, including Nomura Holdings of Japan, reports discussing the possible end of the euro, and advised clients to verify their statements of bonds denominated in euros for ascertain if it can be converted to local currencies, such as the drachma, which could swamp the market quickly.

Been trying financial institutions such as ICAP to anticipate what might happen in the hours and days of shock in the event of dissolution of the euro, say executives at the company that it can be used drachma as a project as a road map for how to prepare for this outcome involving multiple currencies, and shook the dust off the old bonds used were archived after Greece joined the euro a decade ago, in preparation for use as a basis a new company's business after the collapse of the euro.

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