A friend going to Spain was told that the economic crisis there would mean he couldn't depend upon using a credit card or on ATM withdrawals while there and that he should take cash. Considering the economic crisis sweeping Europe makes me wonder if I should consider the same aspect when in several European countries for a couple of months this spring. For that matter, will the Euro remain the cash standard? While there are no crystal ball answers, I would appreciate the thinking and considerations from anyone keeping current on this.
Posted by
Chicago
2876 posts
If a banking panic occurred in Spain or elsewhere, it might precipitate a run on the banks. (This is basically the plot of Jimmy Stewart's movie "It's a Wonderful Life".) In such an event people might not be able to withdraw cash from those banks' ATM's. My own opinion is that such an event is extremely unlikely - because I think the Eurozone - and us - would immediately come to the rescue. However, something like this did occur in Argentina, 10 years ago.
Posted by
Myrtle Beach, USA
12313 posts
I'm never one to say anything can't happen but, to me, the idea that everything freezes, regardless of how bad things get, is extremely unlikely. If you couldn't get cash, I be really surprised if you couldn't find businesses that will accept your credit card. Put yourself in their shoes. If you can't get cash, no one else can either. Businesses still have products or services to sell and employees/bills/taxes to pay - they need to find a way to conduct business as much as you need to be able to buy things. If everything did crash, it's likely the wads of money you bought ahead of time would lose a lot of value in a hurry.
Posted by
Bloomington, IL, USA
9371 posts
I'm headed to Spain myself in May, and I have no such concerns. I would be very uncomfortable taking/exchanging a large amount of cash, so I will still rely on my ATM and credit cards.
Posted by
Tresana, Highlands Ranch, CO, USA
23621 posts
Another friend of a friend of a friend who heard from a cousin. Unless someone can cite a solid source for that or any other information I would not worry about it. Is it a possibility? Sure, so is your plane crashing on the way over. Remember the vast majority of people using ATMs in Europe are the locals. So they will need access to cash just as your do. I personally would not worry about it. If it is that bad, I would be at the airport looking for the next plane home.
Posted by
Vernon, Canada
32349 posts
Ron, Who gave your friend that information? While anything is possible, the possibility of the situation you describe is utterly ridiculous! I would not suggest travelling with a huge amount of cash! My suggestion would be to purchase some Euros for "travelling funds" and then use ATM's while in Spain. I would highly recommend taking at least two ATM cards on different accounts, in case there's a problem with one card of it's compromised or stolen. Note that funds accessed by an ATM must usually be in a chequing account with a four-number PIN. At least one credit card would also be a good idea. Be sure to notify your financial institution(s) prior to your trip so they don't "freeze" your cards when they notice transactions occurring in Europe. Happy travels!
Posted by
Oak Park, Illinois
4535 posts
If there is a bank run in Spain or the collapse of the euro, you'll have a lot more to worry about than just getting cash while on vacation. Just relax and enjoy your trip.