EMS Crisis Crushes Ecu Currency Market; Future Depends On Politics, Say Traders

BANKS

The turmoil in the European Monetary System and lingering questions about the future of the Maastricht treaty have left the Ecu market in serious trouble, say bankers surveyed. Activity in the currency has dropped off markedly as the main source of business--Ecu bond trading--has nearly dried up. Traders remain guardedly optimistic for the moment, maintaining that the market's not dead, it's just resting.

"A lot of people's worst fears about Ecu have come true," says David Simmonds, treasury