The President of Cyprus Nicos Anastasiades stated clearly that “We have no intention of leaving the euro” and “In no way will we experiment with the future of our country”.
The financial crises is now “contained” in result of the 10 billion euro EU and IMF bailout deal.
What Cyprus needs to do
According to the deal struck with the EU and IMF, the country of Cyprus is responsible for raising 5.8 billion euros to qualify for the assistance.
Eurozone oversight has secured strong capital controls on Cyprus to prevent funds leaving the country. To keep bank users from withdrawing their funds and “running”, these capital controls have been put in place:
- Committee established to review commercial transactions between 5,000 and 200,000 euros
- Daily withdraw limit of 300 euros
- Check cashing is banned
- Transfers over outside of Cyprus limited to 5,000 euros per month
- Business able to carry out up to 5,000 euro transactions per day
How does this affect Forex Trading?
The euro seems to have found a bottom for the time being. With Cyprus concerns and several other factors in the recent months, the Euro has found itself at four-month lows. Knowing that Cyprus will not leave the Euro will give investors something to stand on when decided whether or not to keep short positions on the euro. If you do not have a EURUSD trade plan, feel welcome to do some researched, watch our latest market analysis, and think about getting one together.
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