Quick question about the Euro

[davywavy]

Just curious here; ever since Cyprus introduced currency controls there have been effectively two currencies - the Cypriot Euro and the European Euro. I know the nominal exchange rate is 1:1, but I was wondering if anyone has any idea what the black market exchange rate now is?

i.e. If I had 150k Euros in Cyprus (I don't, this is an example), how much would someone in France give me for them?

I know hairyears has said in the past you work for a bank so wondered if you'd heard anything?

Comments

[hairyears.livejournal.com]

I haven't heard a dicky bird about it.


This means that the sums affected are too small to matter outside a narrow group of local specialists.

If I troubled myself to ask a currency trader in this country, I'd get a blank look: a Euro is a Euro is a Euro... Which rather sidesteps the question. As well it might: if it mattered, they'd have no counterparties in Cyprus and no trades in which this could be an issue, so it wouldn't actually matter. At all. Emphaticallly not. And that sort of thing isn't discussed in polite company.

Also: we're talking about Cyprus, right? If you're Russian, a major bank, or have the influence that comes with having a sum of money large enough to matter, I doubt that you have any idea that currency controls still exist. Or if they ever did.

[davywavy.livejournal.com]

I'm certainly not implying anything untoward; my interest is pure curiosity.

I noted that the Bank of Cyprus in London was open for 48 hours after capital controls were introduced, and so my question may well be moot anyway.

[hairyears.livejournal.com]

There is an obvious question, which sounds like two questions:

Who decides that a currency transaction is exempt from these restrictions?
Who decides that a Euro-denominated account is onshore, or offshore and thereore beyond all consideration of restrictions and exemptions?

[davywavy.livejournal.com]

Oh, good point. I hadn't thought it through.