The circulation of the new currency Euro started on Jan. 1, 2002. On that day the currencies of 12 countries went out of circulation. These currencies were swapped or switched into a new, unified currency, the Euro.
The Euro had been used by banks and corporations as “paperless” legal tender since 1999 for all financial transactions. Now it will be used for all transactions. To meet the demand for the new currency, the European Central Bank (ECB) has already minted 15 billion Euro notes and 60 billion Euro coins. Will travelers to Europe notice anything different? Yes! Gone are French francs, Italian lira and Greek drachmas, among others. Gone, too, are the headaches of changing money each time you cross a border.
The Euro has the same value in all European Union (EU) member countries. There are seven Euro notes (5, 10, 20, 50, 100, 200 and 500) and eight Euro coins (1 and 2 then 1, 2, 5, 10, 20 and 50 cents). Each country has designed coins with one side standard for all Euro coins and the other side bearing a national emblem. Over the long term, this new monetary system should streamline travel finances — no longer will you need to juggle 70 coins from a dozen countries. But in the short term, varying dual-currency periods may give rise to subtle price increases and general monetary confusion. For travelers, this means you’ll most likely encounter two sets of prices for goods and services, though all purchases are officially supposed to be billed in Euros — check your bills carefully.
Officially, consumers should be able to exchange legacy currencies into Euros at any bank or bureau de change until at least March 31, 2002. After that date, old banknotes may be exchanged at local banks, but old coins may become more difficult to unload.
Which 12 EU countries make up the Euro zone? Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain.
Will businesses accept old currencies after Jan. 1, 2002? Yes, except in Germany, where theDeutschmark ceased to be legal tender as of Jan. 1, 2002. The dual circulation period extends through Feb. 28, 2002 in all other Euro zone countries, except for France (Feb. 17), Ireland (Feb. 9) and the Netherlands (Jan. 28).
How will credit card purchases and ATM withdrawals be billed? Credit card purchases have been billed in Euros since 1999. ATMs in most big cities will dispense Euros, but more remote locations may lack them for some time to come.
What if I don’t exchange old currencies? Old bills will be exchangeable through at least 2012 and indefinitely in some countries. Coins can be exchanged at national banks until at least the end of 2002, but may become more valuable as collector’s items.
Today 1 Euro is equivalent to US$ 90 cents.
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