The Aussie dollar is holding up surprisingly well, trading flat for the session at 76.50 US cents. The currency took a hit in offshore trade on Friday, but that was due to strong US economic data and happened before the latest Greek developments.
Shares slump, wiping about $30 billion off the local markets’ value, as investors brace for a possible messy ‘Grexit’, after Greece called a snap referendum on debt plans and imposed capital controls.
Treasurer Joe Hockey says Australia is “well placed” for a Greek exit from the eurozone.
“Treasury has been engaging with the Reserve Bank, Australian Prudential Regulation Authority and Australian Securities and Investments Commission and we are monitoring the situation closely,” he said.
“This is a lesson for everyone. If you don’t get your budget in shape when you can, the pain is always far greater later.”
Hockey who is in China to sign up Australia to the Asian Infrastructure Investment Bank told reporters he would be discussing the Greek situation with other finance ministers.
“Australia’s exposure to Greece is very limited and quarantined. There were strong messages from all of the Europeans I spoke to today to affirm that the Europeans have matters under control.
“The Europeans are sending very strong messages of reassurance. Obviously, they are managing the process.”
*This information is general only. Please consult your financial planner to take into account your individual needs.