Well- Should I holiday in Greece??!!

CountDrakma

First off many thanks to all for your replies. I've decided I'm just going to go to Greece with a tourist mindset and not fret about the overarching political/economic turbulence there. I always take currency anyway.
Actually it was last year that I heard or read something about "Y" prefixes supposedly meaning 'Greek' Euro notes. Likewise the info said:
M= Portugal: T= Ireland: X=Germany (sorry I can't recall the source of that info but I wrote it down, and still have the note). When I got back from Greece last year I checked the lettering on a load of Euro notes I brought back from there and not one contained the letter Y!!

Itismehonest

Doshwaster wrote: »

Well, I respect Calder as a travel expert but I doubt he knows any more about the legal, financial and practical processes of dropping out of the Euro than you or I do. All this about "Greek" Euros being "marked" is pure speculation.

Not relying on cards is reasonable advice just as it is for travelling in a country with an unreliable banking system.

Don't shoot me I'm just the messenger
Yes, it is purely speculation but he was saying that this was exactly what had happened to him when he was travelling during the time of the break up of the old USSR
http://www.independent.co.uk/travel/simon-calder/beware-greek-euros-travel-company-warns-7746780.html

johnfarquhar74

Doshwaster wrote: »

Well, I respect Calder as a travel expert but I doubt he knows any more about the legal, financial and practical processes of dropping out of the Euro than you or I do. All this about "Greek" Euros being "marked" is pure speculation.

Actually, he was recalling a precedent set in the old Soviet Union, I think early 90's. Whilst in the Ukraine(or somewhere similar) the currency was roubles but stamped with something to indicate a Ukranian rouble. When he tried to use them elsewhere within the C.I.S he was told they were practically worthless.
Simon Calder then went on to say, rather unhelpfully I thought, that paper money was a 'huge confidence trick', people may start to avoid holding/using euro's with the 'Y' prefix, if that happened they would be devalued over night!

markwilkinson

Just had a look at our supply of Euros in the wife's holiday purse. Mostly Spanish and Irish coins, havnt bothered to check the prefix on the notes, so no idea on those I'm afraid.

We are going to Greece in just under 3 weeks and I'm really looking forward to it!

As others have said on this thread the Euro is a Euro - that's what single currencies are. My pound is worth as much at home as it is in London, although I might need more pounds to buy a pint in London....

The Ukraine example is a red herring, in my view, Calder is quite knowledgeable but no expert on anything. Certainly not world economics and even less so on a country defaulting/escaping from the Euro.

I've taken the point about Euro's in small denominations, just in case that lovely taverna doesn't have change.

luellaaa

Again, the euro is a single currency, even if there was a crisis, theres bound to be a period where notes can be exchanged. If i look at my bank today and i have £3000 euros, how many of them are greek euros? NONE. They are all euros :rotfl:

Also, the chances are nothing will happen so just enjoy your holiday, Greek people are so hospitable and the islands are still calm !:)

Geoggy

Itismehonest wrote: »

The point Calder was trying to make is that existing Euros in circulation in Greece would be marked, in the short term, in some way so that they had a worth relevant to any devaluation in Greece's economy. In other words, instead of having to suddenly come up with new printed notes (eg new drachma) there would be a Greek Euro which would not have the same value as the Euro in other countries.

Example (should this happen) - You have a 50 Euro note. You spend 20 Euros in a Greek shop & are given 30 of the newly marked 'Greek' Euro. When you come to exchange these Euros or should you want to spend them in another Eurozone country they will not have the same value.

His advice was to take plenty of small denomination Euro if going to Greece in order that you don't get caught out & because it is becoming a cash society where cards are being refused.

This makes absolutely no sense whatsoever.

I am going to Greece on holiday twice this year, and if anyone tries to give me back a stamped Euro in change I will simply refuse - or I will ask them to change my 50 E note for all Greek Euros at the current exchange rate (should one exist) between the Euro and the fabled "Greek Euro", and then pay the price in Greek Euros.

On Calder's logic we would all be better taking £'s and just exchanging them for "Greek Euros" and getting amuch better exchange rate?!

johnfarquhar74

Geoggy wrote: »

This makes absolutely no sense whatsoever.

It makes sense to those that understand it(NOT ME), but finance/economics is tricky enough, never mind hypothetical finance/economics!

Geoggy wrote: »

On Calder's logic we would all be better taking £'s and just exchanging them for "Greek Euros" and getting amuch better exchange rate?!

Quite a few financial experts are saying this. Where countries have came out of mutual currencies, HARD currency like sterling or dollar wins every time. Failing that, gold.

johnfarquhar74

Geoggy wrote: »

I am going to Greece on holiday twice this year, and if anyone tries to give me back a stamped Euro in change I will simply refuse - or I will ask them to change my 50 E note for all Greek Euros at the current exchange rate (should one exist) between the Euro and the fabled "Greek Euro", and then pay the price in Greek Euros.

It is only one(of many) hypothetical outcome, BUT, if Greece were to pull out of the €uro, they would need some form of paper money to get by on a daily basis. Let's say on a given Friday, the Greek politicians throw their toys out the pram and pull out. All banks/businesses would close. ALL €uro's within Greece would be, marked by some means, some have suggested a Δ (D for Drachma). They would still be a €uro but now with a Δ printed on it. So far so good, 1 €uro = 1 Δ €uro, but as soon as businesses open on Monday the value will change, it is very likely the Greek €uro will be worth a lot, lot, less.
Now, as a tourist, you could hand over a bona fide €50 note for something, say a €25 lunch and get €25Δ in change. That €25Δ will still buy you another €25 lunch in Greece, but if you brought it home, you would only be able to change it for equivalent rate of the new Greek currency, chances are it won't be the equivalent of €25!
This has happened before in other countries around the world, but never in Europe/€uro land so although there are similarities there are no guarantees it will play out the same.
The biggest problem, for me, is worry. Financial markets are nervous at best, but when a country like Greece threatens to pull out, it upsets not only the clever financial types but also 'some' holidaymakers who are unsure about the whens and the whats! Considering tourism is a cash cow for Greece, a steady guaranteed income of hard cash, just when they need it, then it seems to me that it's something that has to be sorted or clarified properly.

Saying that, me worrying about a potential weekend without money and an overpriced glass of Retsina is a bit crass given the images we've seen recently of urban Greeks and the real hardships that are being imposed on them

markwilkinson

All Euros in Greece will be marked? Or just the Greek printed ones with the prefix? Sounds like a logistical nightmare to me! How many 'Greek' Euros are currently in Spain? Germany? Italy? Who does the marking and how do you get every Greek Euro in the Eurozone to the person marking the notes? Can this be done overnight? What about the coins? What happens if 'German ' Euros get marked accidentally?

There is no exit plan, speculation is futile IMHO.

johnfarquhar74

markwilkinson wrote: »

All Euros in Greece will be marked? Or just the Greek printed ones with the prefix? Sounds like a logistical nightmare to me! How many 'Greek' Euros are currently in Spain? Germany? Italy? Who does the marking and how do you get every Greek Euro in the Eurozone to the person marking the notes? Can this be done overnight? What about the coins? What happens if 'German ' Euros get marked accidentally?

There is no exit plan, speculation is futile IMHO.

From what I have read and heard, all euro's in Greece would be marked, all marked notes would be the new, interim currency, until proper Drachmas could be printed. However, they aren't exactly going to come and take them out of your tills/pockets, only those held within banks will be affected, creating a two tier currency within one country.
There is still loads of posturing to be done by the various political types, I still think Greece will be 'reined in', but the potential for exit is there and marking currency has happened in the past!