Dealing in Marks in American has soared over the last few days in the wake of the European currency crisis--speculators, and ordinary travellers, are buying up all the Marks they can find in the hope that the Mark will be revalued, or at least be allowed to float i.
Dealing in Marks in American has soared over the last few days in the wake of the European currency crisis--speculators, and ordinary travellers, are buying up all the Marks they can find in the hope that the Mark will be revalued, or at least be allowed to float i.e. to establish its own level according to supply and demand on the international market. But Marks are scarce, and will be even more so as a result of tonight's decision by the Common Market Executive Commission to propose that the central banks of member states be allowed to float their currencies--this would brake the flow of speculative currency, the Commission said.
O'Hare Airport in Chicago, one of the major direct travel links between the USA and Europe, has been experiencing particularly heavy buying of Marks--one terminal ran out on Friday. The speculation undermines the position of the Mark, but there is one consolation for German manufacturers. There's been a rush in German goods too, buyers fearing that if the Mark is revalued, the price of articles made in Germany will go up.
SYNOPSIS: While O'Hare airport in Chicago is experiencing sharp buying of German Marks as part of the latest wave of international speculation against the Mark, the Commission of the EEC proposed on Saturday to float the European currencies. It's hoped this would end speculation, and bring some semblance of order back to the international monetary scene. The speculation has been so great, that one of the terminals ran out of Marks last week, and the supply of Marks is getting scarce.
One consolation for German manufacturers is that there's also been a rush for German goods...buyers fear that a revaluation of the German Mark would increase their price. Floating the Mark, as the German Finance Minister Professor Schiller has long advocated, could bring about a de facto revaluation, thus ending speculation. In this way the EEC Commission hopes to end the European currency crisis.