There appears now to be contingency plans in the making for a new currency in the event of the total exit of Greece as now reports indicate that For months “Grexit” has been a regular topic for speculation among foreign currency specialists. But the working assumption has been that all parties in Greece’s drawn-out saga would find a way of resolving their differences and keep the country in the eurozone. That is no longer the case following the resounding “No” vote in the Greek referendum. As the financial markets digested the referendum outcome, foreign exchange strategists began to factor in the increased probability, instead of mere possibility, of Grexit.
Barclays described that outcome as a “now high probability”, while JP Morgan said Grexit “appears more likely than not”. Ulrich Leuchtmann, currency analyst at Commerzbank, said: “Unless a miracle happens it seems impossible that Greece will be able to return to normal operations under balance sheet continuity. FULL REPORT