How much Will Euro Depreciate Against Dollar?

How much Will Euro Depreciate Against Dollar?

Greek Treasury will face huge amount lose, if the government is not formed in the near future. The Ministry of Finance of Greece stated that “if we do not have a government that would negotiate on the allocation of next IMF tranche, and if the state does not receive the expected monthly inflows to the budget, we face the problem of liquidity at the end of June”.

We can only guess what will happen to the euro quotes, if Greece would not be able to form a government that will negotiate with creditors. As noted in an interview with “Echo” independent economist Oktay Hagverdiyev, everything will be decided after meeting German Chancellor and the new president of France.”After this meeting, it becomes clear which way Europe will go on. In particular, the new president of France said that he intends to change the stabilization measures, signed by Sarkozy. In turn, Merkel opposes this proposal. ” Referring to Greece, said that billions of O.Ahverdiev that it receives as a loan, it will not help. “In this country, a high level of unemployment. Also come a time when the need to repay debts. In this regard, it will not be able to avoid default. One of the possible development of the situation variantov3 is its exit from the European Union, after which it starts printing its national currency “, – concluded the economist.

Meanwhile, as noted in an interview with “Echo” the chairman of the Center for Economic and Social Development Vugar Bayramov, the victory of the Socialists in France, has created some concern towards the ratification of the spending cuts in the EU. “The Socialists opposed the signing of this program when they were in opposition. France is the second economic power EU country. Accordingly, if France did not join this program, its implementation will be impossible”.
In this context, quotes euros, according to Bayramov will depend on steps to be taken by the new government of France. “So far, the quotations of the euro will continue to fall. It should also be borne in mind that a sharp drop in the euro quotations are not interested in the major exporters (USA, Japan and China). But if France refused to join the program to reduce costs in the EU and the Greek crisis worsened, the sharp drop in prices the euro is quite possible, “- warned Bayramov.

 

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