Counting down Grexit: money printer preparing to print drachma18 May, 2012, 19:55. Posted by Zarathustra
Tags: Euro Crisis
Here, I have said that Greece will return to drachma, sooner or later.
Now, it looks like we can start counting down now.
I have already noted that the street consensus has shifted, now that the market believes Greek exit of the Eurozone (or Grexit) is the central case after the political chaos. Now we learn that the EU and ECB are devising contingency plans in case Greece has to leave the Eurozone. They subsequently denied it, predictably, but here’s the story from Reuters:
The European Commission and the European Central Bank are working on an emergency scenario in case Greece has to leave the euro zone, EU trade commissioner Karel De Gucht said in an interview published on Friday.
Meanwhile, De La Rue, a British money printer, is gearing up for printing the Drachma again. Also from Reuters:
De La Rue has drawn up contingency plans to print drachma banknotes should Greece exit the euro and approach the British money printer, an industry source told Reuters on Friday.