Forex focus: mattresses become a safe haven for the euro "We have seen an increase in the amount of people bringing any cash savings they have out of Greece (and Spain) but the bigger concern is for those who have their money tied up in assets such as property and business," says Stephen Hughes of Currencies.co.uk. Exchange controls are not a rarity as Charles Purdy, managing director of Smart Currency Exchange, points out: "Having worked in South Africa for a number of years, exchange control was very much a part of international trade. But fund flows in the eurozone are supposed to have no such limitations. The trouble is that in times like this, with so much uncertainty surrounding the long term viability of banks in the southern states, funds are moving north to safe havens. This is very difficult to stop legally. Simon Smith of FxPro says the numbers show the evidence of money going elsewhere: "In Switzerland, it's in the 28pc rise in FX reserves seen in May so as to defend the franc cap against the euro. In Germany, it's in the property market. If Greece were to exit the euro, at some point capital controls would have to be imposed, to stop money leaving the country while a new currency was introduced. Already Europe's finance ministers have discussed imposing capital controls, putting in border checks on the movement of money and limiting withdrawals from bank cash machines. Jeremy Cook of World First preaches calm, saying: "We're naturally going to see some deposit flight from countries that are in the spotlight, but statements that this is a new phenomenon and that people are moving their money out of the eurozone en masse are inaccurate and unhelpful. We are not seeing a run on banks in Greece at the moment; deposits have been walking away for the past two years, and are unlikely to come back. Spanish money is also slipping out of the country and will continue to do so without some form of backstop, but there is no need to press the panic button. Introducing controls on the movement of money across the eurozone goes against the core principles of the union, as Alistair Cotton of Currencies Direct says. It will be very difficult in practise for the eurozone to stop the flow of money from the weaker peripherals to the more stable German core. It is in Germany's interest to keep all eurozone members in the euro. Whether there is a full scale bank run in the periphery rests on the Bundesbank's tolerance for the liabilities to keep building, and at the moment they have no choice.