Euro Currency Mini-FAQ
Yves Bellefeuille
Posting-Frequency: Monthly
Last-Modified: 2001-02-16
URL: http://www.faqs.org/faqs/travel/europe/euro/
EURO CURRENCY MINI-FAQ
by Yves Bellefeuille <y...@storm.ca>
QUESTION:
I'm planning a trip to Europe. How will the new euro currency affect me?
SHORT ANSWER:
Until the year 2002, you can, and should, completely ignore the euro and
continue to deal with French francs, German marks, etc., as if the euro
didn't exist.
LONGER ANSWER:
What is the "euro"?
===================
On 1 January 1999, the exchange rates for 11 European currencies were
permanently fixed relative to each other, and relative to a new
currency, the euro. Greece joined the system on 1 January 2001, making a
total of 12 countries.
These are the rates:
1 euro (EUR) = 40,3399 BEF (Belgian francs)
= 1,95583 DEM (German marks)
= 166,386 ESP (Spanish pesetas)
= 6,55957 FRF (French francs)
= 0,787564 IEP (Irish pounds)
= 1936,27 ITL (Italian liras)
= 40,3399 LUF (Luxembourg francs)
= 2,20371 NLG (Dutch guilders)
= 13,7603 ATS (Austrian shillings)
= 200,482 PTE (Portuguese escudos)
= 5,94573 FIM (Finnish marks)
= 340,750 GRD (Greek drachmas)
For example, 20 French francs are worth 3,05 euros, and this will never
change. Similarly, 20 French francs are now worth 5,96 German marks, and
this will never change.
These 12 countries are sometimes called the "euro-12", the "euro zone",
or the "euro area".
Note that the new currency is called the "euro", with a lower case "e".
It's probably acceptable to call it the "euro currency", for clarity.
The name "euro dollar" is completely incorrect. The euro's sub-units are
called "cents".
[FAQ maintainer's comment: The euro's predecessor was called the ECU, or
European Currency Unit. I think that the old name was preferable, since
"euro" is much more confusing.]
Can I pay in euros?
===================
For now, the euro is only a "bookkeeping" currency. It's possible to
quote a price in euros, bill in euros, and even make a cheque in euros.
Giving a price in both euros and the local currency is already common in
many countries. However, there are no euro bank notes and coins. These
will only appear in 2002.
Therefore, if you're paying in cash, you'll continue to deal with
Italian liras, Finnish marks, and so on. In most countries, credit card
bills now show the amount in both the local currency and euros, using
the fixed conversion rates listed above. In many countries, you can also
use either the local currency or euros if you're paying by cheque.
(Sjoerd van der Voet <sjo...@xs4all.nl> writes that retail cheque and
credit card payments in euros won't be allowed in The Netherlands until
the year 2002.)
Travellers' cheques in euros are also available. When you cash them, you
should get the local currency at the rate quoted above, but you may have
to pay a commission or charge. The general advice is to get travellers'
cheques in your own currency, not in the currency of the country you're
visiting, so if you live outside the "euro area", you should probably
avoid travellers' cheques in euros.
Changing euro-12 currencies
===========================
Banks and "bureaux de change" can still charge a commission or fee when
changing between the 12 currencies participating in the euro system.
This can either be a fixed fee or a percentage of the amount changed.
However, there can no longer be different rates to "buy" and "sell"
currencies; the fixed rates mentioned above must be used for all
transactions.
The European Central Bank states that each national central bank must
have "at least one location" where one can change bank notes from other
euro-12 countries to the national currency at the official rate. Here
are the WWW sites for the national central banks:
Banque nationale de Belgique - Nationale Bank van Belgie:
http://www.bnb.be/
Deutsche Bundesbank: http://www.bundesbank.de/
Banco de Espana: http://www.bde.es/
Banque de France: http://www.banque-france.fr/
Bank of Greece: http://www.bankofgreece.gr/
Banc Ceannais na hEireann (Ireland): http://www.centralbank.ie/
Banca d'Italia: http://www.bancaditalia.it/
Banque centrale du Luxembourg: http://www.bcl.lu/
De Nederlandsche Bank: http://www.dnb.nl/
Oesterreichische Nationalbank: http://www.oenb.co.at/
Banco de Portugal: http://www.bportugal.pt/
Suomen Pankki: http://www.bof.fi/
In France:
You can change other euro-12 currencies to French francs (not the
other way around) at the "Banque de France" offices found in many
cities.
You can also change many non-euro-12 currencies to French francs at
the official rate, without commission, at these offices, so they are
an excellent place to change money.
In Germany:
Other euro-12 currencies can be changed to German marks at the
"Landeszentralbank" offices found in many cities. Identification is
required to change more than DEM 5 000.
The Deutsche Bundesbank warns that the process can be quite lengthy,
since each note is checked to make sure it isn't a forgery.
In Italy:
Other euro-12 currencies can be changed to Italian liras at the
"Banca d'Italia" offices found in many cities. The maximum that can
be changed is ITL 3 000 000.
In the Netherlands:
Bank notes (not coins) from other euro-12 currencies can be changed
to Dutch guilders at the official rate at the following locations:
Amsterdam: Westeinde 1 (near Frederiksplein, between
Reguliersgracht and the Amstel)
Eindhoven: Dr. Holtroplaan 1
Hoogeveen: Schutlandenweg 1
Wassenaar: Rijksstraatweg 334
These locations are open Monday to Friday from 9:00 to 12:00.
Identification is required. A maximum of NLG 5 000 may be changed at
any time.
What about non-euro countries?
==============================
The euro, and the 12 currencies participating in the system, will
continue to fluctuate relative to other currencies. For example, as of
12 January 2001, the euro is quoted at:
1 euro (EUR) = 1,4197 CAD (Canadian dollars)
= 0,9486 USD (US dollars)
= 0,6418 GBP (UK pounds)
= 111,70 JPY (Japanese yen)
= 1,5401 CHF (Swiss francs)
Three countries in the European Union are not currently participating in
the euro system. They are: Denmark, Sweden, and the United Kingdom.
Countries not in the EU (Switzerland, Norway, Iceland, and "Eastern
European" countries) are completely unaffected by the euro.
How should I plan for my trip?
==============================
If you're planning a trip to Europe and you live outside the "euro
area", you should ignore all of this and be ready to pay in Dutch
guilders, Irish pounds, and so on, as you always have -- at least until
the year 2002.
More information:
=================
For more information, see the European Union's WWW page at:
http://www.europa.eu.int/
and the European Central Bank's WWW pages at:
http://www.ecb.int/
http://www.euro.ecb.int/
Acknowledgements:
=================
Thanks to Bjorn, Mark Brader, Padraig Breathnach <padr...@iol.ie>,
Simone Fortina, Konrad Hinsen <hin...@cnrs-orleans.fr>, David Leslie,
Luca Logi <ll...@dada.it>, Arwel Parry <ar...@cartref.demon.co.uk>,
Andre Ruysschaert, and Sjoerd van der Voet <sjo...@xs4all.nl>.
Matt Drury
changeover that's coming in January?
Decobabe
"Matt Drury" <drag...@spamcop.net> wrote in message
news:9tb2fd$d5j$1...@suaar1aa.prod.compuserve.com...
> Thanks for posting this. Is there an update which explains the currency
> changeover that's coming in January?
>
>
do it. Some coin-op things have already been changed, like the supermarket
carts, which take both already. However, as of February, instead of 500
lire ($.25 US) it will cost 1 Euro to borrow the cart.
The only thing I am hearing from neighbors is that the decimalizing is new
to them, because it has been so long since a fraction of a lira meant
anything.
I asked at my bank and they said that I can buy Euro physically Dec. 17, but
for a fee. If I wait until 1 January it's free, of course.
Arwel Parry
<drag...@spamcop.net> writes
>Thanks for posting this. Is there an update which explains the currency
>changeover that's coming in January?
EURO CURRENCY CHANGEOVER FAQ (version 1.2, 2001-11-19)
by Arwel Parry <ar...@cartref.demon.co.uk>
QUESTION:
Which countries will use the euro?
ANSWER:
The countries which are participating in the euro are: Belgium (BE),
Germany (DE), Spain (ES), France (FR), Republic of Ireland (IE),
Italy (IT), Luxembourg (LU), Netherlands (NL), Austria (AT), Portugal
(PT), Finland (FI), Greece (GR). Remember that some of these countries
consider their overseas territories to be part of the mother country, so
euros may be found further away from Europe than you expect.
Various mini-states such as Andorra, Monaco, San Marino, and the Vatican
City which use one or another of the old currencies will also be using
the euro, and presumably it will also circulate in some non-EU countries
which use one of the predecessor currencies, such as the DMark.
QUESTION:
What denominations will the notes and coins be?
ANSWER:
Coins: 1, 2, 5, 10, 20, and 50 cent, 1 and 2 euro.
Notes: 5, 10, 20, 50, 100, 200 and 500 euro.
As different countries have different traditions of using
high-denomination banknotes, the highest denominations will not
necessarily be issued in all countries. 200 and 500 euro notes will not
be issued in Portugal (and France?), though those issued elsewhere will
be valid in those countries.
All banknotes will look the same, whichever country they are issued in.
Coins will have one "common" side and one side unique to the issuing
country, but all coins are valid in all countries.
QUESTION:
How will the changeover be accomplished?
ANSWER:
The public will be able to obtain euro coins in small packs from the
following dates:
14 December 2001: FR.
15 December 2001: BE, ES, IT, LU, FI.
17 December 2001: DE, GR, IE, NL, AT, PT.
However, the coins will not be spendable until 1 January 2002.
Bank accounts will be automatically converted to euro on 1 January 2002.
Most bank teller machines (ATMs) will be converted to issue euro notes
only from 1 January 2002, and the rest will be converted as soon as
possible afterward.
The actual denominations which will be issued by ATMs will vary
from country to country, probably as follows:
BE: (5), 20, 50
DE: 5, 10, 20, 50 mostly
GR 20, 50 mostly
ES: 10, 20, 50 or 20, 50
FR: 10, 20 mostly
IE: 10, 20 predominantly
IT: 10, 50 or 10, 20.
LU: 20, 50, 100; 5 and 10 in selected ATMs.
NL: 5, 10, 20, 50.
AT: 10, 100.
PT: 5, 10, 20, 50.
FI: 20, 50.
As ATMs in most countries will not issue notes smaller than EUR 10, most
EUR 5 notes and coins will enter circulation as change for purchases in
shops. All change given in shops from 1 January 2002 should be in euro,
regardless of whether payment was made in old currency or in euro (see
example below).
QUESTION:
I'll be travelling in Eurozone countries around the turn of the year,
Which currency should I get?
ANSWER:
It is unlikely that you will be able to get hold of substantial amounts
of euro notes and coins before 1 January 2002 (even though the EU
website speaks of making euro notes available to financial institutions
outside the EU from 1 December 2001). Therefore it seems logical that
you should get the old currency of the country you expect to be in in
the first week of January 2002, and convert it to euro at a local bank
or post office (but expect queues!).
QUESTION:
How long do I have to exchange any notes and coins I have from the old
currencies?
ANSWER:
There are three different periods to consider:
1) The "transition period" when both the old currency and euro can be
spent in shops. The last day when the old currency can be spent in shops
are:
28 January 2002: NL
9 February 2002: IE
17 February 2002: FR
28 February 2002: All other countries (Technically, the Deutsche
Mark ceases to be legal tender on 31 December 2001, but it will still be
spendable to the end of February).
2) The period when old currency can be exchanged at commercial banks.
The end date of this period has not been defined for all countries, but
are currently:
BE: 31 December 2002
DE: 28 February 2002 at least, and handled "flexibly" thereafter.
GR: To be defined.
ES: 30 June 2002
FR: 30 June 2002
IE: To be defined.
IT: Banks to decide on a voluntary basis.
LU: 30 June 2002
NL: 31 December 2002 - banks may charge to exchange from 1 April
2002.
AT: To be decided by individual banks after 28 February 2002.
PT: 30 June 2002.
FI: To be decided by individual banks.
3) The period when notes and coins will be exchanged by the Central Bank
of the country concerned:
BE: Notes exchanged indefinitely; coins exchanged until end 2004.
DE: Indefinitely.
GR: Notes exchanged for 10 years; coins exchanged for 2 years.
ES: Indefinitely
FR: Notes exchanged for 10 years; coins exchanged for 3 years.
IE: Indefinitely.
IT: 10 years.
LU: Notes exchanged indefinitely; coins exchanged until end 2004.
NL: Notes exchanged until 1 January 2032; coins exchanged until 1
January 2007.
AT: Indefinitely.
PT: Notes exchanged for 20 years; coins exchanged until end 2002.
FI: 10 years.
EXAMPLE OF HOW OLD CURRENCY CAN BE SPENT IN THE TRANSITION PERIOD.
This example is set in Ireland. 1 euro (EUR) is defined as 0.787564
Irish
Pounds (IEP), which conversely means that 1 IEP is 1.27 EUR (as a close
approximation for small sums).
Suppose you are in Dublin around the turn of the year, and you decide to
take the guided tour of the State Apartments of Dublin Castle. For an
adult, this costs IEP 3.15 or EUR 4.00.
If you take this tour in the last week of December 2001, and tender a 5
IEP note, you will receive IEP 1.85 in coins as your change.
If you take this tour in the first week of January 2002, and tender a 5
IEP
note, this note is now worth EUR 6.35 (1.27 * 5), and you will receive
EUR 2.35 in coins as your change.
People are encouraged to spend their old currency notes first, before
spending euro notes, so that all the old currency will be taken out of
circulation relatively quickly. The Euro Changeover Board of Ireland
expects more than half of all cash transactions to be in euro within two
weeks of 1 January 2002.
Much of the information in this FAQ is abstracted from "Elements of the
National Cash Changeover Plans",
http://europa.eu.int/euro/html/page-dossier5.html?dossier=470&lang=5&page
=2&nav=5
--
Arwel Parry
http://www.cartref.demon.co.uk/
Matt Drury
Thanks, Arwel!
sjoerd
> QUESTION:
> I'll be travelling in Eurozone countries around the turn of the year,
> Which currency should I get?
>
> ANSWER:
> It is unlikely that you will be able to get hold of substantial
> amounts
> of euro notes and coins before 1 January 2002 (even though the EU
> website speaks of making euro notes available to financial
> institutions
> outside the EU from 1 December 2001). Therefore it seems logical that
> you should get the old currency of the country you expect to be in in
> the first week of January 2002, and convert it to euro at a local bank
>
> or post office (but expect queues!).
No need to exchange "old" money into euros if you travel in
January/February 2002. . In most countries, you can use your "old" money
until the end of February, 2002. (28 January in NL) All shops, hotels,
restaurants etc. will accept the "old" banknotes and coins, and give you
your change in euros.
Sjoerd