How has Germany Benefited From the Euro Crisis?
LONDON, August 3, 2012 /PRNewswire/ –
While many nations have struggled with the Euro-zone crisis, Currencies
Direct believe that the German economy has greatly benefited.
While Greece, Spain, Italy, and many other Euro-zone countries are suffering as a
result of the recession, Germany has been able to thrive in spite of the Euro crisis. Not
only is the German government currently enjoying negative interest rates on bonds, but
unemployment is reducing while the number of exports is growing.
In an unprecedented economic situation, Germany has been able to borrow EUR3.9 billion
for the next six months at the incredible interest rate of -0.01%. In recent years,
Germany has had to pay 1.8% interest on such bonds.
So what is the reason for such a windfall? Well, amid the Euro crisis, Germany is one
of the few borrowers that have been seen as a safe haven. Many investors would therefore
rather lend money at an extremely low rate than risk losing it.
Currencies Direct, one of Europe’s leading currency exchange
[http://www.currenciesdirect.com ] providers, believes that this is becoming a trend for
the Euro crisis, as Germany seems to be profiting while other nations are struggling.
Italy, for instance, are currently being forced to pay a record interest rate of 7%,
as lenders have little trust for the government in Rome. Investors are also beginning to
question whether Mario Monti can reduce the EUR1.9 trillion debt without stifling the
economy. Meanwhile, Spain and Ireland are also suffering from sharply rising bond yields.
This situation is in stark contrast to Germany, who has benefitted from favourable
exchange rates [http://www.currenciesdirect.com/info-centre/currency-converter ] as a
result of the weak Euro. The Euro has now fallen to $1.27, which is the lowest since
November 2010. The weak Euro consequently means that exports to outside of Europe are more
competitive. German exports have, as a result, increased to 2.5% month on month since
November, reaching EUR94.9 billion.
The financial situation has become quite bleak for Europe, as recent projections from
the Institute of Economic Research have revealed that the economies of France, Spain,
Italy, Belgium, Greece, Portugal, and Cyprus will shrink in 2012. The German economy, on
the other hand, is set to grow by 0.4% this year.
For more information regarding currency exchange, the Euro zone crisis, or
to simply view the dollars to pounds
[http://www.currenciesdirect.com/info-centre/currency-converter/usd-to-gbp ] exchange
rates, visit the Currencies Direct [http://www.currenciesdirect.com ] website.
About Currencies Direct
Currencies Direct is one of Europe’s leading non-bank providers of currency exchange
payment services. Since its formation in 1996 Currencies Direct has evolved and positioned
from being an innovative service provider of foreign exchange for consumers and high net
worth individuals into a dynamic and pioneering ‘business to business’ fully integrated
treasury solution service provider.
Head quartered in the City of London (United Kingdom) with operations in Europe,
Africa, Asia and the United States, Currencies Direct is part of the Azibo Group, a
privately owned investment company.
SOURCE Currencies Direct