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When France erupted in 1968, where did nervous money flee?

  • US dollars 145 votes (41.3%)
  • British pounds 79 votes (22.5%)
  • German marks 72 votes (20.5%)
  • French government bonds 55 votes (15.7%)

Total votes: 351

Answer: C. German marks

When France erupted in protests and strikes in May 1968, investors began moving money out of the country, with West Germany’s deutsche mark becoming a favoured destination.

This is known as capital flight. When investors lose confidence in a country’s political or economic stability, they often move their money into currencies they consider safer.

The pressure helped weaken the French franc, which was eventually devalued by 11.11% in August 1969.

It’s a reminder that political unrest doesn’t just affect people on the streets. It can send money fleeing across borders, too. And as Bill discovered firsthand, sometimes being somewhere else is the safest option.