Eurozone Puns

https://www.wsj.com/articles/cash-glut-in-eurozone-drives-dollar-demand-11639477801?mod=hp_lead_pos7

Summary:

A wave of programs intended to boost loans from European banks has has left Euro banks flush with cash and little opportunity for investment. The situation has driven the same banking institutions to look over seas for places to park cash.

The process has caused a significant demand for USD as European banks move Euros to Dollars to earn 0.05% in deposits with the Fed. even with a strengthening dollar and paying a premium for euro cross-currency basis swaps, the opportunity continues to look attractive to European banks whom were able to borrow from the ECB at -1.0%.

Analysts expect this trend to diminish after the first of the year once banks year end balance sheets are set and in anticipation of additional treasury supply following the Feds tapering & increased debt ceiling.

The relative recent strength of the USD and the potential for slowdowns in Dollar demand from Europe could provide an opportunity to rebalance existing US Equity/Int'l Equity positions that have become out of sync due to dollar strength and the relative equity performance over the past year.

First of all, thank you to all who take the time to answer to this long post.

Here is some basic information about Bulgaria:

Bulgaria is currently using the Bulgarian Lev (BGN), which is pegged to the Euro at a fixed exchange rate of 1.95583 Bulgarian Leva for 1 Euro or 1 Bulgarian Lev equals roughly 0.51 Euro. This has been the case since 2002, when the Euro was introduced, before that, the Bulgarian Lev had been pegged to the Deutsche Mark since 1997. Bulgaria joined the ERM II without an opt-out in July 2020, together with Croatia.

Here are the main concerns of the Bulgarian population in regards to the transition to the Euro:

1. Many Bulgarians fear that, when Bulgaria is accepted into the Eurozone, their savings would lose about half of their value.
2. Wages and salaries would be cut in half.
3. Prices would double.
4. We'd lose part of our sovereignty by switching to a foreign currency.

I have addressed all these concerns many times myself, but these misconceptions still persist among the population. So my main questions are:

1. How was the transition to the Euro in your country, were there such concerns in your country when it was being accepted into the Eurozone?
2. Did any of the concerns come true after that?
3. Has the general situation in your country improved, worsened or remained the same since the accession to the Eurozone?
4. Is there anything else that I haven't considered, that you know about this, that is also worth mentioning?
5. If you have any personal experience that is relevant, please do share.

https://www.marketwatch.com/story/eurozone-inflation-reaches-historic-high-271641549607

Croatia could use the euro starting from 1st January 2023 and Bulgaria in 2024. What do you think about this?

View Poll

First of all, thank you to all who take the time to answer to this long post.

Here is some basic information about Bulgaria:

Bulgaria is currently using the Bulgarian Lev (BGN), which is pegged to the Euro at a fixed exchange rate of 1.95583 Bulgarian Leva for 1 Euro or 1 Bulgarian Lev equals roughly 0.51 Euro. This has been the case since 2002, when the Euro was introduced, before that, the Bulgarian Lev had been pegged to the Deutsche Mark since 1997. Bulgaria joined the ERM II without an opt-out in July 2020, together with Croatia.

Here are the main concerns of the Bulgarian population in regards to the transition to the Euro:

1. Many Bulgarians fear that, when Bulgaria is accepted into the Eurozone, their savings would lose about half of their value.
2. Wages and salaries would be cut in half.
3. Prices would double.
4. We'd lose part of our sovereignty by switching to a foreign currency.

I have addressed all these concerns many times myself, but these misconceptions still persist among the population. So my main questions are:

1. How was the transition to the Euro in Slovakia, were there such concerns in Slovakia when Slovakia was being accepted into the Eurozone?
2. Did any of the concerns come true after that?
3. Has the general situation in Slovakia improved, worsened or remained the same since the accession to the Eurozone?
4. Is there anything else that I haven't considered, that you know about this, that is also worth mentioning?
5. If you have any personal experience that is relevant, please do share.