Reverting to Drachma May Send Greek Currency at Least 40% Lower

Greece’s citizens would see a 40 percent drop in their purchasing power should the nation replace the euro with its erstwhile currency, according to analysts.

“Initially there would be a massive selloff, something in the region of 30 to 40 percent depreciation against the dollar,” said Neil Jones, head of hedge-fund sales at Mizuho Bank Ltd. in London. “We will get fresh all-time lows” for the drachma, he said.