Thursday

6th Oct 2022

Europeans buying kroner, property, gold amid euro fears

  • The eurozone crisis continues to intensify as politicians struggle to find solutions (Photo: Images_of_Money)

A growing number of Europeans are moving their savings into what they feel are safe havens, amid fears that the eurozone crisis could lead to the break-up of the single currency.

One unnamed private banker at a global group, who specialises in clients worth at least $5 million, told Reuters on Monday (5 December) his team had seen a pick up in clients fleeing the euro. He described the trend as something "between a trickle and a flood."

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

Richard Cookson, chief investment officer at Citigroup's private banking arm, which caters to clients worth more than $25 million, told the news agency he had seen clients "shifting out of euros."

In the UK, which is outside the eurozone, London estate agents have reportedly seen an increased interest in the city's high end residential property market from European cash buyers.

In Belgium, Thierry Martiny, a spokesman for Dexia Bank told this website: "Both in number and in amount [of money], we notice a limited increase in fixed-term savings accounts in Norwegian kroner."

Separately, Portuguese financial daily O Diario Economico on Monday confirmed the trend, reporting that over the last couple of weeks many Portuguese have opened up savings accounts in foreign currencies.

"There has been an important increase in openings of accounts in a foreign currency, especially in dollars, Swedish kronor, Norwegian kroner, and Swiss francs," said Joao Queiroz of GoBulling, an online trader. "It is a phenomenon that has been visible for at least the last two months."

The newspaper noted an increased number of bank accounts being opened up abroad.

The price per ounce of gold also rose nearly four percent last week - its sharpest rise in more than a month. It has almost doubled over the course of last year.

David Woo, the global head of rates and currencies at the Bank of America, told investors on Friday they should buy gold rather than the euro for fear of the currency losing more of its value.

"The European Central Bank will be buying more government debt and doing quantitative easing [pumping more euros in the market], so buy gold against the euro," he told Bloomberg.

EU leaders discuss gas price cap — amid rationing fear

The European Commission will present its roadmap to reduce gas prices to member states during an informal summit in Prague. The plan includes a price cap on gas used to generate electricity, but experts point out a variety of risks.

Exclusive

EU officials were warned of risk over issuing financial warning

The European watchdog for systemic economic risk last week warned of "severe" threats to financial stability — but internal notes show top-level officials expressed "strong concerns" over the "timing" of such a warning, fearing publication could further destabilise financial markets.

Analysis

Four weeks to COP27 — key issues and challenges

World leaders will meet in exactly four weeks to discuss some of the most pressing issues of climate change — amid escalating geopolitical tensions, and widespread mistrust in the developing world as green finance promises remain unfulfilled.

Opinion

The fossil-fuel agenda behind EU's carbon-capture plans

The fossil-fuel industry is using the carbon removal agenda to get yet more support for failed carbon capture, which is a key component of the pie-in-the-sky carbon removal technologies being promoted by the EU Commission.

News in Brief

  1. Sweden: Nord Stream probe points to 'gross sabotage'
  2. Orbán rails against Russia sanctions at Prague summit
  3. MEPs urge inquiry into Mahsa Amini killing and Iran sanctions
  4. Thousands of Hungarian students and teachers protest
  5. Swedish MEP cuts hair mid-speech to support Iran women
  6. Danish general election called for 1 November
  7. Slovenia legalises gay marriage, adoption
  8. Russia's stand-in EU ambassador reprimanded on Ukraine

Stakeholders' Highlights

  1. Obama FoundationThe Obama Foundation Opens Applications for its Leaders Program in Europe
  2. The European Association for Storage of EnergyRegister for the Energy Storage Global Conference, held in Brussels on 11-13 Oct.
  3. EFBWW – EFBH – FETBBA lot more needs to be done to better protect construction workers from asbestos
  4. European Committee of the RegionsThe 20th edition of EURegionsWeek is ready to take off. Save your spot in Brussels.
  5. UNESDA - Soft Drinks EuropeCall for EU action – SMEs in the beverage industry call for fairer access to recycled material
  6. Nordic Council of MinistersNordic prime ministers: “We will deepen co-operation on defence”

Latest News

  1. What actually happened at the 'most complicated election in the world'?
  2. Europe lays aside quarrels to isolate Putin
  3. Spyware-hacked MEPs still seeking answers
  4. EU leaders discuss gas price cap — amid rationing fear
  5. Germany braces for criticism of national €200bn energy fund
  6. The fossil-fuel agenda behind EU's carbon-capture plans
  7. Four weeks to COP27 — key issues and challenges
  8. EU wants to see US list on Russia financing of politicians

Join EUobserver

Support quality EU news

Join us