ECB won’t let Greece fall

Tuesday, 5 July 2011 04:28

The Euro is taking a bit of a hit in today’s trading session, as the 17 nation currency traded 0.5% down from yesterday’s session, at 1.4477 against the Dollar.

International Banks are meeting in Paris today, Tuesday, in order to discuss France’s stance on contribution by the private sector to the Greek bailout package. 

ECB started off by refusing to accept Greek government bonds as collateral for loans in case if S&P, Moody’s and Fitch threw a default on Geece.  ECB is using rating agencies for whether or not to support the Greek banking system.  As long as the rating agencies don’t declare a selective default on Greece, ECB will help.

EUR/USD is currently trading at 1.4480.