FRANCE: The euro opened at 1.1091 dollar on Monday in Asian trading, down 0.5% from Friday’s close. After 14 hours of talks lasting into the night, negotiations between Greece and its creditors were still ongoing on Monday morning. Despite Greece’s latest effort to come up with a credible list of reforms, Eurozone leaders said that trust in the Greek government to implement the reforms was the main issue.
One of the proposals that was put at the discussions was a German proposal that Greece should temporarily exit the euro for five years but this was dismissed by the French president. It is believed that the talks have now centred on what reforms Greece needs to pass through the Greek parliament before talks can officially be opened on a third-bailout of up to €86 billion. Some of the measures Greece needs to approve include reforming pensions, streamlining VAT and giving legal independence to Greek statistics office.
The euro had stabilised around 1.1130 against the dollar but jumped to 1.1191 on reports that a deal had been reached. The single currency also rose against the pound to 0.7199 and against the yen to 137.58. The aussie and the kiwi were firmer against the dollar at 0.7458 and 0.6738 respectively on signs that the shares slump in China is stabilising.
