Forex Flash: Euro area faces new challenge on Cyprus drama - Nomura

FXstreet.com (Barcelona) - In view of Nomura economist Jacques Cailloux, the new challenge faced by the Euro now is "maintaining depositors' confidence in the banking sector not only in Cyprus but across the region in the absence of a robust and credible system wide insurance mechanism."

"Exiting successfully from the bank holiday and maintaining confidence in the wider system across the rest of the euro area are not easy tasks and might require some “credible regime-shifting policies” if one can draw any lessons from Roosevelt’s ability to bring about a complete turn in confidence after the March 1933 - Bank Holiday in the US" Jacques adds.