Drachma drills - The Best from Greece

 

Worldwide uncertainty about the cohesion of the eurozone in recent weeks has prompted currency traders to prepare for the turmoil that will prevail in the money markets in the event of the single currency area breaking up.

 

According to a report in The Source, the Wall Street Journal’s blog, the redenomination of balance sheets, assets, loans or savings accounts - let alone commodities - will bring "happy days for lawyers, printers and cash-machine manufacturers" but a long nightmare for everybody else.

 

ICAP plc (no relation to the Greek ICAP market research company), the firm which runs the world's biggest bank-to-bank currency dealing system, is running mock transactions to prepare its computer systems to trade the drachma again, said the WSJ.

 

And CLS Bank, the securities trading clearance utility, is also running stress tests for various scenarios of a eurozone breakup, with Greece, Ireland, Spain or Germany for that matter, switching to their national currencies.

 

Rumours that the Bank of Greece has been running similar drills with its drachma printing presses since last year have been vehemently denied by the Greek authorities.

 

But some people may find some onsolation in the thought that competent agencies and companies are making sure the world will not fall apart if worst comes to worst.