CD South Africa: Greece on the brink of Grexit!
Currencies Direct June 29th 2015 - < 1 minute read
Greece put one foot in the grave on the weekend, pulling out of bailout talks in favour of a referendum on 5 July. The result: Greek banks will be closed until 6 July, capital controls mean no money will be leaving the country and ATMs are limited to €60 daily withdrawal per person (this excludes tourists, so no need to cancel that holiday!). A 'yes' vote will give Greece a chance at avoiding a 'Grexit', while a 'no' vote will seal Greece's fate.
How will this affect the rand? The local unit hit 12.41/$ in early trade and risks will remain high over the next week as risk aversion builds ahead of Sunday's referendum. To add to the mix we have an action packed week on the data front culminating in US jobs data on Thursday (Friday is a US banking holiday). Buckle-up and enjoy!
Commentary by Gareth Frye