Euro rate wobbles as Cypriot savers remain unable to access or transfer their money

The euro’s exchange rate continues to wobble early Tuesday as Cypriot savers awake to find that they are still unable to access or transfer their money at ALL of the island’s banks.

The shared euro zone currency took a hit against all major currencies in trading yesterday as comments from Jeroen Dijsselbloem’s suggested that the Cyprus bailout could act as a blueprint for other struggling euro zone countries. Traders and investors largely interpreted this to mean that no euro zone country would be safe from potential raids by their governments and sold the euro.

Cyprus Banks Closed

As we had reported last Thursady (you can see the article here: euro money mayhem ) we expected that the situation was so bad that it would be impossible to open the islands banking system until later this week at the earliest.

ALL Cyprus banks will now stay closeed until at least this coming Thursday to ensure “the smooth functioning of the whole banking system”, said the central bank as it backtracked on an earlier decision that all but the two largest lenders would open their doors on Tuesday.

Cypriot finance minister Michalis Sarris has said he hopes that the recently enforced capital controls for Cyprus’s banking system will only be in place for a few weeks and also warned that large depositors could face losses as high as 40 percent.

How to Transfer Money Out of Cyprus

For those who are considering a cross currency, bank to bank international money transfer and if you want to save money, then beat the banks (including the banks in Cyprus) choose Currencies Direct to transfer your funds overseas.

If you have been affected by the latest events surrounding Cyprus, if you need to make an urgent money transfer then check out Currencies Direct website click here

Foreign exchange brokers like Currencies Direct are able to make bank to bank money transfers on behalf of their clients and more often than not they will be much more competitive than high street banks. So to move money the smart way, open a free account and wait until the banks reopen next week to mull over your options.

Russian Investors Reeling

Russian private and commercial investors make up around 50 percent of funds parked in Cyprus’s banking sector and no doubt they are reeling from this latest agreement which will effectively freeze their funds until further notice at two of the biggest banks in Cyprus.

Russia’s Prime Minister said yesterday there was a need to “understand what this story turns into in the long run, what the consequences for the international financial and monetary system will be – and thus, for our own interests as well.”

So it seems that the Russians will move their money to another offshore banking haven as soon as they can access their funds and the UK may well benefit.

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This article was written by: JR @ liveoilprices.co.uk

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Euro rate wobbles as Cypriot savers remain unable to access or transfer their money