Greek Financial Crisis: The Greek Crisis Pushes Up the Dollar

Greek Financial Crisis: The Greek Crisis Pushes Up the Dollar

The Greek financial crisis seems to be spreading its wings and sending jitters down the world economy. Risk aversion seems to be back with a vengeance. To bail out the indebted Greek economy, several central banks including the Greek central bank and the ECB had bought billions of dollars worth of Greek government debt. Now, with news of the possibility of collapse of some Greek banks, the Greek government paper may actually turn out to be worth less than it originally was. This could have a significant impact on the Euro, which now has considerable exposure due to the substantial amount of loans to the Greece.

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