The European commissioner for Internal Market and Services, Michel Barnier, has announced that limits on movement of capital in Cyprus may last only a few days. Pundits are now worried that these could last for months.
So, bank run in a "number of days" then? RT: @djfxtrader: *EU Barnier: Capital Controls in Cyprus May Only Last a Certain Number of Days— Ilya Spivak (@IlyaSpivak) March 25, 2013
Head of Cyprus finance committee says banks may not reopen tomorrow. Expects capital controls, "definitely"— Ed Conway (@EdConwaySky) March 25, 2013
Allister Heath on the consequences of capital controls:
Imagine if one couldn’t move money from London to Birmingham, and that there were therefore for all intents and purposes a series of regional pounds: sterling would no longer be a unified currency. Similarly, a Cypriot euro would no longer be a proper, fully-fledged euro, regardless of what the Eurocrats would like the rest of us to believe, at least for as long as these capital controls remain – and like all bad, oppressive laws, they will have a tendency to live on forever.
Capital controls in a monetary union? Doesn't that mean a Euro is worth less in Cyprus than in rest of Eurozone?— Douglas Carswell MP (@DouglasCarswell) March 25, 2013