Currency Market Trend Analysis: June 23, 2016
EUR - European Union Euro
The European Commission will stop all payments of the European Regional Development Fund to Greece for the 2014 - 2020 programmes. It was confirmed in a letter by New Europe and signed by Walter Deffaa, Director-General for Regional Development.
The European Commission is pausing funds until a thorough investigation is completed on the Greek competition authority, which questions the possibility of manipulation in allowing funds for major infrastructure projects.
Already identified companies participating in the cartel as all major constructions companies and large foreign companies present in Greece. They recently found out the cartel was supposedly active for over 27 years, according to the letter.
A final decision will not be announced until after the European Commission President, Jean-Claude Juncker, has concluded his trip to the Greek capital, to wrap things up before the competition authority studies the case on July 21.
TRY - Turkish Lira
Turkey could face an extended period of economic inactivity. The lira could drop due to some terrible geopolitical developments, which may cause a severe weakening of the currency and the economy's debt.
Experts from European Policy Centre warned about this issue on Tuesday at their discussion on the Turkish economy. The combination of local corruption, a war in neighboring Syria, and deterioration of the internal security situation all contribute to the country's economic meltdown.
Today, we can observe weaknesses in both Turkey's regulatory institutions and rule of law. The political independence of some regulators is undermined through legislation over the last few years, said Johannes Zutt, Country Director for Turkey, Europe and Central Asia at the World Bank.
According to the IMF, Turkey currently has a 52 percent GDP that should focus on establishing a more broad capital market to remove tension from the banking sector.
Currency Exchange International (CXI) is a leading provider of foreign currency exchange services in North America for financial institutions, corporations and travelers. Products and services for international travelers include access to buy and sell more than 90 foreign currencies, multi-currency cash passport’s, traveler’s cheques and gold bullion coins and bars. For financial institutions and corporations, our services include the exchange of foreign currencies, international wire transfers, global EFT, the purchase and sale of foreign bank drafts, international traveler’s cheques, and foreign cheque clearing through the use of CXI’s innovative CEIFX web-based FX software www.ceifx.com