I have two queries i cannot figure out on my own.
Scenario: If the euro does collapses or irish default happens and we go to punt nua.All euro accounts(and maybe foreign currency accounts) will change into punt nua. From reading all the posts lately, nobody wants this as the punt nua would be weak apparentily.
Query 1: People are beginning to put thier euro into german accounts so that if the euro collapses, their money is converted to this 'strong' currency.
However, If the euro collapses, Will thier not be an agreed upon euro exchange rate for all currencies being equal.
EG: At the moment, a german euro and a irish euro is worth the same.
When they are going back to Punt Nua and DM, will the euro not be worth about 2 Irish punts, and 1.5 DM for example. So Its all the same in the end since 1.5DM will be equal to 2 Irish punts?
Does this make sense? What am i missing here?
Query 2: Inspired by the thread regarding holding foriegn currency physically so that no bank account can be pillaged during the conversion.
Would it not make sense to simply hold euro physically? Eg withdraw your savings and put it in a deposit box. Then when the DM comes in, walk into a bank and simply exchange your money for DM at the going rate. The irish euros and the german euros are the exact same, so why is their a rush to change banks to german so quickly? Is it because, quickly after the euro falls, the value of it will plummet REALLY fast so you want to change your money to DM at the very start?
Thank you for help with this pondering!
Scenario: If the euro does collapses or irish default happens and we go to punt nua.All euro accounts(and maybe foreign currency accounts) will change into punt nua. From reading all the posts lately, nobody wants this as the punt nua would be weak apparentily.
Query 1: People are beginning to put thier euro into german accounts so that if the euro collapses, their money is converted to this 'strong' currency.
However, If the euro collapses, Will thier not be an agreed upon euro exchange rate for all currencies being equal.
EG: At the moment, a german euro and a irish euro is worth the same.
When they are going back to Punt Nua and DM, will the euro not be worth about 2 Irish punts, and 1.5 DM for example. So Its all the same in the end since 1.5DM will be equal to 2 Irish punts?
Does this make sense? What am i missing here?
Query 2: Inspired by the thread regarding holding foriegn currency physically so that no bank account can be pillaged during the conversion.
Would it not make sense to simply hold euro physically? Eg withdraw your savings and put it in a deposit box. Then when the DM comes in, walk into a bank and simply exchange your money for DM at the going rate. The irish euros and the german euros are the exact same, so why is their a rush to change banks to german so quickly? Is it because, quickly after the euro falls, the value of it will plummet REALLY fast so you want to change your money to DM at the very start?
Thank you for help with this pondering!
