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by 80hours
5316 days ago
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Nothing special. Euro would be exchanged with national currencies. No money will be lost or anything. Just a giant currency conversion, but with some turbulence around it. Having said that, the Euro is a great project. It will trigger a common European economic policy and that will push Europe to the next level. |
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What national currencies will Euros be exchanged for? What rates will they be exchanged at? Will other markets recognise those new currencies (and they will be =new= currencies, since all the Eurozone currencies ceased to exist when they changed to the Euro), and what rates will they be traded at on the markets as opposed to the fixed exchange rate they'll swapped for Euros at.
It took 10 years to get from the establishment of the Euro (then ECU) as a currency to the point where all the Eurozone nations switched to it as the only official currency - there will not be 10 years to switch the other way, and it's going to be very very messy.
The Euro is the 2nd most traded currency after the US dollar, is the 2nd largest reserve currency after the dollar, it's used as part of currency baskets for setting FX rates of numerous other currencies. Were the Euro to dissolve, the second order effects in markets around the world would be extremely turbulent, and likely highly damaging to the world economy.
Claiming that it would be 'Nothing special' is naivety at it's most dangerous.