Spanish village goes back to peseta
February 15th, 2012 - 1:10 am ICT by Aishwarya BhattMadrid, Feb 14 (THAINDIAN NEWS) With the ongoing euro crisis, a Spanish village has opted to go back to using the peseta. Residents in Villamayor de Santiago got back to the old currency in a bid to avoid the full impact of the euro crisis.
During the euro switchover, the villagers decided to hold on to the old currency as a security against the new currency failing. Their fear seems to have been realized with more than a third of the population out of work.
Spain has been one of the worst hit economies in the recent euro crisis. There are fears that the country may need a bailout due. Since 2002, food prices in Spain have gone up by more than 40 percent.
The village reverted back to the peseta in January and more than 6,000 euro worth of the old currency have been in circulation. The village believes that their move could be replicated in other parts of the country.
It is estimated that Spain still has about 1.7billion euros worth of pesetas with the citizens.
European politicians are currently fighting to save the euro which is facing some challenges. They are under pressure to save the currency.
- Euro blamed for driving up cost of living in Spain - Dec 28, 2011
- Euro on brink of collapse: IMF - Apr 18, 2012
- Spain to use $37 billion for bank restructuring - Jun 17, 2010
- Spain's borrowing costs rise sharply in bond auction - May 18, 2012
- Spanish banks' bad loans ratio highest since 1994 - Feb 18, 2012
- Spain sells bonds at sharply lower yields - Jan 18, 2012
- Spanish clubs move to end domination of big two - Sep 07, 2011
- Qatar pledges to invest $4 bn in Spain - Mar 01, 2011
- Spain sells 3.2 bn euros in bonds at higher rates - Apr 18, 2012
- Spanish debt auction attracts strong demand - Jan 13, 2012
- Spain raises 2.59 bn euros in bond sale - Apr 05, 2012
- Gold prices rise to $1,285 an ounce - Sep 22, 2010
- Spain to play three warm-up games for Euro 2012 - Mar 29, 2012
- Barcelona squad at limit for Malaga trip - Jan 20, 2012
- Spanish royal family's budget reduced - Oct 01, 2010
Tags: bailout, challenges, circulation, citizens, currency, european politicians, fear, fears, feb 14, food prices, madrid, peseta, population, spanish village, villamayor de santiago, work spain