The euro & you

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Europe is changing its currencies

As from January 1, 2002, 12 European countries are giving up their national currency forever, and adopting a common currency: the euro.

12 Member States of the European Union are participating in the common currency. They are: 

• Belgium

• Germany

• Greece

• Spain

• France

• Ireland

• Italy

• Luxembourg

• The Netherlands

• Austria

• Portugal

• Finland

(Denmark, Sweden and the United Kingdom are members of the European Union but are not currently participating in the single currency).

(Denmark is a member of the Exchange Rate Mechanism II (ERM II) which means that the Danish krone is linked to the euro, although the exchange rate is not fixed.).

Over a period of just a few days,more than 14 billion euro banknotes and 50 billion euro coins will replace almost as many national currency banknotes and coins. Over 300 million people will be affected by this change. Never before had such an operation been undertaken on this scale.

What are the advantages of the euro?

When travelling in the euro area

You only have to change money once; one currency is all you need now. For instance, when you visit a museum in Italy, you can pay the entrance fee using euro coins left over from your stay in Greece; you can buy a meal in France with euro banknotes you got from a cash dispenser in Spain; etc. All this will save both time and money.

When shopping in the euro area

Prices are displayed in the same currency; they are easier to compare and help you make the right choice.

When doing business with the euro area

There is no longer any risk of fluctuation between currencies. Interest and inflation rates are much lower. You buy, sell and borrow within a larger and more competitive market. Managing your business is easier and less expensive.

How to get hold of euro?

• From 1 January 2002:

Banknotes and coins will be available at all banks, at post offices, from cash dispensers, and in shops.

• From mid-december 2001:

  Consumer coin starter kits (i.e. an assortment of euro coins of all denominations) will be available in all euro area countries, to help familiarize with the new currency.

  Note: The kits/coins, as all euro cash, can be used for daily transactions only as from 1 January 2002.

What should I do?

If I travel to a euro zone country over the New Year period what currency should I take?

Opt now for euro travellers cheques (TCs). In the run up to the launch of euro notes and coins many banks will cease to issue TCs in the national currencies to be replaced and will only issue euro TCs. Euro TCs are safe, convenient and can already easily be presented at banks, bureaux de change etc., with costs and commission varying from country to country and bank to bank.

What should I do with Travellers Cheques I have in the national currencies to be replaced?

Travellers Cheques are valid forever so you will not lose out in any way. If you are in Europe you will be able to change them for a short period at commercial banks and for a far longer period at central banks (see 'How long will the changeover period last?' for more details.)

However, for the sake of convenience it is strongly suggested that you change or use any Travellers Cheques or other money that you may have in the national currencies to be replaced as soon as possible. Changing them in third countries may well prove difficult and you would need to check with national banking authorities if it would be possible.

What should I do if I have cash in currencies that are going to change to the euro?

Unless you want to keep it as a souvenir it is strongly suggested that you change it into another currency before the end of the year. Banks in the region have different dates for when they will stop exchanging any of the old currencies. For example in Thailand many banks have indicated that they will stop buying these currencies on 31 December 2001 although a few will continue to exchange them into 2002.

What will happen to any bank accounts that I hold in any of the currencies that are going to change to the euro?

If you hold a bank account in Deutsh Marks, French Francs etc., your bank should have contacted you with regard to the change over. Generally, these accounts would be converted to euro but you should check with your bank.

What about the old national currencies?

• Until 28 February 2002 at the latest (earlier in France, Ireland and the Netherlands), they can still be used for payments in cash.

Note: In order to contribute to the rapid withdrawal of old national currencies, retailers have engaged to give change in euro.

• Until 31 March 2002, banknotes of any euro country can be exchanged for euro, free of charge, at points designated by the national central banks of the 12 euro area countries.

• Until 31 December 2002 at the latest, banknotes of each euro erea country can also be exchanged at banks in the country concerned.

Until 28 February 2002 at the latest, this service will in general be free of charge for banks customers. For non-customers, during the same short period, free-of-charge exchanges will in most cases be limited to household amounts (except in Germany, where non-customers will be charged).

• At the latest until the end of 2012, national central banks will exchange their old national banknotes against euro free of charge; the old national coins may be exchanged free of charge at least until the end of 2002. In most countries the redemption periods are longer or even indefinite.

Conversion rates

The conversion rate for the euro for each participating currency is irrevocably fixed and is the only rate to be used for conversion either way between the euro and the national currency unit or for conversion between the national currency units.

The euro conversion rates are:

		Belgian franc 40.3399		Deutsche Mark 1.95583
		Greek drachma 340.750		Spanish peseta 166.386
		French franc 6.55957		Irish pound 0.787564
		Italian lira 1936.27		Luxembourg franc 40.3399
		Dutch guilder 2.20371		Austrian schilling 13.7603
		Portuguese escudo 200.482		Finnish markka 5.94573

euro Coins - Common Side

The front of each coin has the same design for all 12 countries in the euro area.

The reverse side displays different designs for each country, created by their own national artists (see: http://www.euro.ecb.int/en/section/euro0/coins.html)

All coins can be used anywhere in the euro area.

EUR 2	Diameter (mm): 25.75 Thickness (mm): 2.20 Weight (g): 8.50 Shape: Round Colour: Outer part: white; inner part: yellow Composition: Outer part: copper-nickel; inner part: three layers: nickel brass, nickel, nickel brass Edge: Edge lettering, fine milled
EUR 1	Diameter (mm): 23.25 Thickness (mm): 2.33 Weight (g): 7.50 Shape: Round Colour: Outer part: yellow; inner part: white Composition: Outer part: nickel brass; inner part: three layers: copper-nickel, nickel, copper-nickel Edge: Interrupted milled
50 cent	Diameter (mm): 24.25 Thickness (mm): 2.38 Weight (g): 7.80 Shape: Round Colour: Yellow Composition: Nordic gold Edge: Shaped edge with fine scallops
20 cent	Diameter (mm): 22.25 Thickness (mm): 2.14 Weight (g): 5.74 Shape: Spanish flower shape Colour: Yellow Composition: Nordic gold Edge: Plain
10 cent	Diameter (mm): 19.75 Thickness (mm): 1.93 Weight (g): 4.10 Shape: Round Colour: Yellow Composition: Nordic gold Edge: Shaped edge with fine scallops
5 cent	Diameter (mm): 21.25 Thickness (mm): 1.67 Weight (g): 3.92 Shape: Round Colour: Red Composition: Copper-covered steel Edge: Smooth
2 cent	Diameter (mm): 18.75 Thickness (mm): 1.67 Weight (g): 3.06 Shape: Round Colour: Red Composition: Copper-covered steel Edge: Smooth with a groove
1 cent	Diameter (mm): 16.25 Thickness (mm): 1.67 Weight (g): 2.30 Shape: Round Colour: Red Composition: Copper covered steel Edge: Smooth

euro Banknotes

On 1 January 2002, seven banknotes will be introduced in 12 Member States of the European Union.

On the front of the banknotes, windows and gateways symbolise the European spirit of openness and co-operation. The 12 stars of the European Union represent the dynamism and harmony between European nations.

To complement these designs, the reverse of each banknote features a bridge. The bridges symbolise the close co-operation and communication between Europe and the rest of the world.

These designs, and the following features are presented in more detail below:

• The name of the currency – euro – in both the Latin (EURO) and the Greek (EYPO) alphabets;

• The initials of the European Central Bank in five linguistic variants – BCE, ECB, EZB, EKT and EKP – covering the 11 official languages of the European Community;

• The symbol © indicating copyright protection; and

• The flag of the European Union.

Recognizing the euro
Security Features

Banknotes

Various security features have been incorporated into the euro banknotes. They will help you to recognise a genuine banknote at a glance. (More: http://www.euro.ecb.int/en/section/recog.html)

	Feel the “raised” print – the special printing processes give banknotes their unique feel.
	Look at the banknote and hold it up to the light: the watermark, the security thread and the see-through register will then be visible. All three features can be seen from the front and the reverse side of genuine banknotes.
	Tilt the banknote: on the front of the banknote, you can see the shifting image on the hologram foil stripe (on the low-value banknotes) or the hologram foil patch (on the high-value banknotes).
	Tilt the banknote: on the reverse side, if you tilt the banknote, you can see the brilliance of the iridescent stripe (on the low-value banknotes) or the colour-shifting ink (on the high-value banknotes).

Coins

The euro coins also were produced according to advanced technical
specifications that make reproduction extremely difficult and easy to detect.

Particular care has been taken to include unique security features on the EUR1 and EUR2 coins.

The EUR1 and EUR2 coins are produced using sophisticated bi-metal technology, which makes them difficult to counterfeit. You will find lettering around the edge of the EUR2 coin. The euro coins incorporate the safest machine-readable characteristics and will be used in vending machines throughout the euro area, irrespective of the Member State which issued them.