The announcement by Greek Prime Minister Alexis Tsipras of the closure of the country’s banks is a significant development for residents and Australian tourists alike, with the Australian dollar already dropping.

In addition to closing financial institutions, Mr Tsipras also enacted strict capital controls which are likely to bring business to a halt.

There is a €60 limit on cash withdrawals and only vital, pre-approved overseas money transfers will be processed.

But the fallout is already being felt in Australia, with the Aussie dollar slightly lower amid wide-spread nervousness in the financial world.

This morning the Australian unit was trading at 76.33 US cents, down from 77.02 cents on Friday.

The Australian dollar lost nearly 1% earlier but it is now almost flat for the day in the mid 76s trading off Chinese stimulus.

One Australian dollar will buy you 69.33 euro cents, down from 68.77 euro cents on Friday.

Shanghai has been all over the place this morning swinging between 2.5% up and down and currently flat. In a bad sign, Chinext is down another 6%. Disappointing so far for the PBOC but early days.

Markets opened rattled this morning with the ASX immediately plunging 2% before rebounding and selling off again now. S&P500 futures are off 1.4%.

Bonds are all strongly bid with the short and long end of Aussie yields off 5%.

On Friday, Greece’s shaky economic toehold saw the Australian market plummet, resulting in the sharpest fall in shares in almost four weeks. More than $35bn was wiped off the Australian stock market in the first hour of trading on Monday as investors brace for what many believe to be an increasingly likely Greek exit from the eurozone.

While the Athens stock exchange will also be closed today, global stock markets are expected to be highly volatile as traders return to their desks to find Greece hurtling towards financial collapse.

A June 30 deadline on a rescue deal is approaching, while Greece is likely to default on a €1.5 billion (more than A$2 billion) payment to the IMF.

It is a small but significant part of a total €350 billion debt, with a huge €16.3 billion needed to pay public servants and keep the country running.

Sources: 9news, Macro business Australia