Good and Bad EUR notes … they are not the same!


Asianmacro had the pleasure of living and being based in Europe for a period in the past.  The best thing of the Eurozone had always been hassle free travel across one country to another within the EU and without the need to change currencies.  You just need EUR and not the FRF (French Franc), DEM (Deutschemark), NLG (Dutch Guilders), ITL (Italian Lira), PST (Spanish Peseta), etc … the list goes on.  While it was fun 15 years ago in trading the ECU basket (that led to EUR) against the constituents’ currencies, it is no fun keeping all these notes and coins when travelling across the continent.

Fast forward to present day … where the markets led by CNBC are heaving a sigh of relief of no bank run seen (*what do you expect Cypriots to do when EUR300 was the daily withdrawal limit?).  The key is what happens after this initial seven days when capital controls as announced expires, do they get rolled over again and again like Groundhog day?

Maybe it is an opportune time to take out any EUR notes you have and see where they come from, where the prefix on each note tells you which country printed them.

Belgium        Z
Germany      X
Estonia         D
Ireland          T
Greece         Y
Spain            V
France          U
Italy               S
Cyprus          G
Luxembourg 1
Malta             F
Netherlands  P
Austria          N
Portugal        M
Slovenia        H
Slovakia        E
Finland          L

Bad money drives out good money!  You better offload any EUR notes with prefix G, that is printed by the Cypriots … before the rest of the world catches on that it might just be worth lesser, ex-ante taking into account what that has happened and possibly even worse ex-post, should Cyprus ever leave the EU!

P.S. I only hold EUR notes from Germany and the Netherlands.

*Asianmacro is a beach bum managing his own wealth.  Besides deciding what to have for lunch (or hitting the gym sometimes), he is mostly found listening to loud music while trading and investing for himself.  While every care has been taken in preparing the information in and/or materials, such information and materials are provided “as is” without warranty of any kind, either express or  implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials. The opinions expressed do not constitute investment advice and independent advice should be sought where appropriate. In no event will Asianmacro be liable to you for any direct or indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached herewith.  Asianmacro may already have or intend to have a trading or investment position in the financial instruments or products referred to in this communication.  This is not intended as an offer or solicitation for the purchase or sale of any financial instrument and Asianmacro may also have interests different from or adverse to your interests.