Foreign exchange stability to push Eastern Europe into euro?

The need for financial stability across the world could see eastern European countries not already part of the European Union join the euro, it has been claimed.

According to the Financial Times, the International Monetary Fund (IMF) is keen to see countries in eastern Europe adopt the euro in an effort to ensure greater foreign exchange stability in the region.

It is thought such a move would help to settle the global economy and reduce the danger of volatile markets in eastern Europe undermining recovery efforts in the region.

The plan could see the countries allowed to join the euro without formally becoming part of the EU itself, with acceptance into the wider community taking place at a later stage.

The global economic downturn has seen a number of countries around the world fall into recession and many states have faced bankruptcy as their financial institutions collapsed.

However, the G20 summit in London last week saw the leaders from the world's top economic countries announce a $1 trillion (£681 billion) package of measures aimed at calming the global economy and bringing back some stability to the financial sector.

Click here to find out how much you can save with HiFX’s Foreign Exchange services

By Paul Jarvis