Greece’s exit wouldn’t cause irreparable harm
By Greenwich Associates
May 30, 2012
Wednesday, May 30, 2012 Stamford, CT USA — As governments, investors and companies scramble to prepare for the chaos that could arise from a Greek exit from the euro zone, it is interesting to note that few seem at all concerned about how global foreign exchange markets would function amid a sudden breakup of one of the world’s major currencies. The reason: The global FX market is perhaps the most liquid, robust and well-functioning market on the planet.
Despite that fact, an event of this magnitude will have a real effect on market volumes, practices and possibly even functionality. Bear in mind: Governments and market participants spent the better part of a decade preparing themselves and their systems for the introduction of the euro. Since a Greek government determined to exit the euro would have every incentive to cut the cord as quickly as possible to stem capital flight, what was built over the course of years could split essentially overnight.
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