World-wide markets were shocked after Greek Prime Minister Alexis Tsipras made the announcement last weekend. Greece decided to implement capital controls from Monday to freeze its financial situation until at least a July 5 referendum for the aid proposal offered by international creditors. As Greek banks are expected to stay close until 7 July, a great throng Greeks has been rushing to withdraw their money from ATM. However the cash withdrawal is limited up to 60 EUR a day and overseas money transfers will also be limited.
The Greek debt crisis has a wider affect on financial markets in the world. In the wake of the announcement, Forex broker, Ava Trade Japan released a significant update today. Ava Trade Japan decided to temporarily increase margin requirement for its institutional clients from 0.25-0.5% to 1% as the broker is extremely concerning about surging volatilities due to growing concern over Greek default. The broker takes this urgent action to protect clients’ funds by letting them secure sufficient margin to resist high volatilities. Ava Trade Japan doesn’t mention when it will set back to the normal leverage.
(Source: Ava Trade Japan)