Why are Cyprus in trouble?

Cyprus have close ties with Greek banks. They lend to Greek banks. When Greece needed the bailout (ongoing) Cypriot money was lost in toxic debt and written off

What is proposed?

Basically a tax on people who have money in a Cypriot bank account. If you have under 100,000 Euros you will have 6.6% instantly taken out and above 100,000 9.9%. This will raise 6 billion Euros in an 8 Billion euro bailout needed.

If you or your clients/prospects are hanging on to trade or maybe have cash waiting ‘for a good time to trade’ it might be worth highlighting the following:

Euro Buyers – This is a great window of opportunity to buy Euros at the best rate in a long time in the current climate. GBP has headed south since the turn of the year and the current trend indicates further weakness. This is a perfect respite to take advantage of the ‘bucked trend’.

On Friday at 22:00 GBP/EUR was at 1.1557

At midnight Sunday night GBP/EUR was at 1.1720

 Euro Sellers – Can argue that the GBP levels are going to continue to strengthen and may be a good time to sell Euros before the vote is passed on Wednesday which will probably see a spike in GBP strength.

If you would like any more information or guidance on any of the currency markets please get in touch with Lauren Bessent from Moneycorp directly, 0207 828 7000 or email to [email protected]