[PEN-L:2406] Re: Re: Re. euro-query

[Doug Henwood <dhenwood@xxxxxxxxx>]

Rosser Jr, John Barkley wrote:

>Now, although most
>eurofinanciers poo-poo the possibility, it is not out of
>the question that black markets in actual currencies could
>develop in the next three years, that somebody might be
>trading guilders for marks on the streets of Amsterdam, or
>wherever, for something other than the rate implied by
>their fixed ratios with the euro.  As long as these
>distinct "national forms of the euro" exist, such an
>outcome is possible.

But the guilder will cease to exist in 2002, at which time it must be
exchanged for euros at the fixed and "irrevocable" rate established the
other week, or it will become a cute but useless piece of colored paper. No
doubt Scholes and his pals at LTCM could put a value on such an instrument,
but wouldn't that execution date undermine any street value of the guilder?

Doug