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19 Mar 2013
Forex Flash: Final Cypriot decision tentative - OCBC Bank
FXstreet.com (Barcelona) - OCBC Bank analysts note that the final decision regarding Cyprus bank deposit levy is still tentative and this would continue to prompt investors putting a brake on their recent riskon actions.
They see that currently, talks are in progress with regards to how the levy will be distributed in Cyprus, with the likes of the Eurogroup suggesting for the government to raise the levy for this with more than EUR100k deposits, in order to protect the smaller savers. They write, “Whatever the case, it seems like the initial panic has subsided and reaction in Asian markets this morning has shown some encouraging moves to note. This doesn’t mean, however, that the entire contagion concerns should be completely ignored at this juncture, and we would still prefer to err on the side of caution for now.”
They see that currently, talks are in progress with regards to how the levy will be distributed in Cyprus, with the likes of the Eurogroup suggesting for the government to raise the levy for this with more than EUR100k deposits, in order to protect the smaller savers. They write, “Whatever the case, it seems like the initial panic has subsided and reaction in Asian markets this morning has shown some encouraging moves to note. This doesn’t mean, however, that the entire contagion concerns should be completely ignored at this juncture, and we would still prefer to err on the side of caution for now.”