[aroundabout]

If each country could have it’s own regulations for the Euro, how does that differ from each country having their own currency, like they had before the Euro?

[stripes1776]

If each country could have it’s own regulations for the Euro, how does that differ from each country having their own currency, like they had before the Euro?

Yes, exactly why I asked the question. I don't know what an international currency is good for if each country treats it like a national one. So I am asking for clarification. Perhaps I don't understand what the term "currency regulations" means.

[SAJ]

To answer your question, they'll end up just about like they were in late 1991, after our ol' buddy ''Char'' Kohl announced reunification and the currency merger with the former East Germany at 1-to-1. In short, they'll be in a brand-new shiny impossible currency arrangement a la the old ERM.

This would be the opportunity of a lifetime for currency traders, yr hmbl srvnt included. The trick is to figure out the net effect on Eurocurrency. Likely wa-a-a-ay negative, I should think.

One other thing, E-P's comments about the difficulty of hedging a few billion are nonsense, plain and simple. The volume daily in forex is in the multi-trillions (dollar-equivalent). A few billion of hedges here and there could be handled very easily by any of the major Interbank players. What's happened is that Airbus is, effectively, managed by committee, and they can't get their thumbs out.

You doubtless recall the old ''definition'' of a committee: the only known form of life with 12 bellies and no brain. Fits Airbus' management perfectly.