Home Blogs Chemicals and the Economy Leaving the Eurozone creates practical problem

Leaving the Eurozone creates practical problem

Currencies
By Paul Hodges on 08-Dec-2011

Greek euro.pngThere is much discussion of countries such as Greece being likely to leave the Eurozone.

Some even believe it is inevitable.

But on a practical basis, how would it happen?

This is a question that has been bothering the blog for some months.

But with another crisis summit meeting about to start, it is no nearer finding an answer.

In previous generations, a currency consisted of coins made from brass, copper, silver and gold. These had a value, depending on their weight.

But today’s currencies have no value in themselves. So if Greece, say, left the Eurozone tonight, how would its citizens buy food and other essential tomorrow morning? Equally, would euro coins (see Wikipedia picture) that had been issued in Athens suddenly become worth less than those issued elsewhere?

Of course, today’s currencies have great advantages for commerce and travel, particularly in our computer age. But replacing one currency with another can’t be done overnight. It took 2 years to happen prior to the Eurozone launch in 2002, for example. Banks had to prepare to exchange newly minted euros for the former national currencies.

If any reader has the answer to the question, the blog would be glad to share it.