British analysts do not believe in breakup of eurozone in coming years

Business Materials 28 July 2011 11:08 (UTC +04:00)

Azerbaijan, Baku, July 28 / Trend A.Badalova /

The ratio of the U.S. dollar against the European currency will decline, amounting to $1.3 per euro by 2012, the British Capital Economics reported.

The U.S. dollar against the E.U. euro Ratio is projected at $1.4 in 2011.
British analysts say the fiscal crisis in the eurozone will deepen, leading to a reduction of the euro's value.

The European currency records a decline against the dollar on the backdrop of concerns about the financial problems in the eurozone. Increased apprehension is caused by German Finance Minister Wolfgang Schauble's statement on the unacceptability of redemption of government bonds on the secondary market by the eurozone reserve fund.

Concerns about the deepening crisis in the eurozone have led to increasing opinions on the possible disintegration of the eurozone in the near future, with the release of her weakest countries potentially caused by Greek default.

British analysts do not believe in the collapse of the eurozone over the next four years.
"We believe the eurozone will continue to exist in its present form for the next four years", Capital Economics said.

According to analysts, the eurozone authorities control the weaker fate of the euro much more than markets expected. Ultimately, the market placing high-pressure through the banking system, can contribute to the disintegration of the euro, analysts said.