Marine Le Pen's win in France can unleash tsunami of economic volatility

Roll-out of new currency across economy would create unprecedented solvency and liquidity risks

With Marine Le Pen through to the second round of the French presidential elections, the prospect of Frexit, which is at the centre of her economic policies, is beginning to spook financial markets. While the possibility of Le Pen winning in the second round remains remote, two weeks can be a long time in politics.

When it comes to the implications of a French exit from the European Union, commentators have so far focused on the €1.7 trillion of French public debt issued under French law – which can be re-denominated into francs, if France leaves the eurozone.