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THE INTRODUCTION OF THE EURO: IRELAND'S CASH CHANGEOVER PLAN FOR 2002
INTRODUCTION
On 1 January 2002 (Û-day), euro notes and coins will begin. There will therefore be a dual circulation period, during which the use of euro notes and coins will be increasing and the use of Irish notes and coins will be decreasing. The mechanism for bringing this period to an end and completing the changeover to euro cash will be to withdraw legal tender status from Irish notes and coins. The Oireachtas has the final say on when this should be done*.
This Plan:
I. outlines what we should all do as individuals to make the changeover to the euro as smooth as possible for everyone;
II. recommends that the dual circulation period should end at midnight on Saturday 9 February 2002;
III. describes how the changeover will be implemented; and
IV. outlines the plans of the sectors and individual organisations that will be most closely involved in implementing it.
I. WHAT WE SHOULD ALL DO AS INDIVIDUALS
We should all play our part to help make the changeover to euro cash as smooth as possible. We can start now by:
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learning how much the euro is worth (Û1 = £0.787564 - that is, just under 79p) and building a scale of values for ourselves in euro, for example by paying attention to euro values where displayed;
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getting to know what euro notes and coins will look like; and
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using any Irish coins we have left lying in drawers, jars etc, and continuing to put our coins to use from now on rather than leaving them aside.
When the changeover to the euro starts on 1 January 2002, we should continue to carry out our normal cash transactions, using our remaining Irish notes and coins first and acquiring euro notes and coins through one or more of the mechanisms outlined in the rest of this Plan.
The organisations involved in the drawing up of this Plan consider that the dual circulation period should be short. Accordingly, they recommend that legal tender status should be withdrawn from Irish notes and coins at midnight on Saturday 9 February 2002, thus ending the dual circulation period. This will mean that from that date, there will be no obligation to accept payment in Irish notes or coins. The Central Bank of Ireland will of course continue indefinitely to give value in euro for Irish notes and coins.
III. HOW THE CHANGEOVER WILL BE IMPLEMENTED
Put simply, the changeover will be achieved by converting all accounts in financial institutions to euro on 1 January 2002 and ensuring that from then on, cash going out to businesses, retailers and the public is in euro and Irish notes and coins being received inwards by financial institutions, businesses and retailers are retained and not issued outwards again. Accordingly, the following measures will be implemented from 1 January 2002;
1. Accounts in Irish pounds held at banks, building societies, post offices, credit unions etc will be automatically converted to euro at the conversion rate, Û1 = £0.787564, free of charge.
2. Non-cash transactions (eg. involving credit cards, debit cards such as "Laser", cheques, etc) will be denominated in euro.
3. Lodgements, whether in cash or in non-cash form, to accounts at (1) will be credited in euro.
4. Non-cash withdrawals from accounts at (1) will be debited in euro.
5. Cash withdrawals from accounts at (1) will be in euro.
6. ATMs (cash dispensers) will begin to dispense euro notes.
7. Social Welfare payments, including pensions, will be in euro.
8. Wages, salaries and pensions will be in euro.
9. Change given by retail outlets will be in euro.
It is expected that by the end of two weeks from Û-day, the bulk of transactions will be carried out in euro.
Detailed Arrangements
To ensure a smooth changeover, detailed arrangements will have to be in place for having adequate supplies of euro notes and coins appropriately distributed throughout the country. The Central Bank and financial institutions will be central to the formulation of these arrangements and will undertake appropriate consultations with other stakeholders, including retail organisations, cash distribution companies and coin providers. Individual retailers will be consulted at branch level. In order to be successful, this major logistical exercise will require that retailers estimate their requirements for euro cash well in advance and make arrangements well in advance with their financial institutions/coin providers for obtaining these requirements.
THE PLANS OF SECTORS AND INDIVIDUAL ORGANISATIONS
The arrangements for the changeover to the euro that will be put in place by the public and private sector organisations are as follows:
The Public Sector
From 1 January 2002, all parts of the public sector, including Government departments and offices, local authorities, health boards and State-sponsored bodies, will make and accept payment in euro. Payment in Irish notes and coins will be accepted until the end of the dual circulation period but any change will be given in euro only.
The Central Bank
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The Central Bank will ensure that sufficient quantities of euro notes and coins for the changeover are produced, and made available to be put into circulation, for the changeover. The production of euro currency began in September 1999.
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The Central Bank will, as necessary, continue to put Irish notes and coins, in all denominations into circulation up to the end of 2001.
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The Central Bank will continue indefinitely to give value in euro for Irish notes and coins.
The Department of Social, Community and Family Affairs
From 1 January 2002, Social Welfare payments, including pensions, will be in euro.
An Post
From 1 January 2002:
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Accounts will be automatically converted to euro at the conversion rate, Û1=£0.787564, free of charge.
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Social Welfare payments made in cash by An Post will be made in euro. In the first week of January 2002, payments over Û20 will generally include at least four Û5 notes.
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All products and services will be charged in euro only. Post offices will accept payment in Irish notes and coins until the end of the dual circulation period, but will give change in euro only.
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Post offices will exchange household amounts of Irish notes and coins for euro free of charge during the dual circulation period and for a time afterwards. A "household amount" means an amount up to an overall total of £500 per individual.
Post offices will continue to accept Irish notes and coins in customer lodgements during the dual circulation period and for a time afterwards.
THE PRIVATE SECTOR
Banks and Building Societies
From 1 January 2002:
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Accounts denominated in Irish pounds will be automatically converted in euro at the conversion rate, Û1 = £0.787564, free of charge.
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Accounts denominated in other currencies participating in the euro* will be automatically converted to euro at the appropriate conversion rate free of charge.
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All services hitherto in Irish pounds or other participating currencies will be in euro.
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ATMs (cash dispensers) will begin to dispense euro notes. It is expected that initially, Û10 and Û20 notes will be the predominant notes dispensed.
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Banks and building societies will exchange household amounts of Irish notes and coins for euro free of charge during the dual circulation period and for a time afterwards. A "household amount" will be defined by each bank and building society as an amount up to an overall total of at least £500 per individual.
Banks and building societies will continue to accept Irish notes and coins in customer lodgements during the dual circulation period and for a time afterwards.
Credit Unions
From 1 January 2002:
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Accounts denominated in Irish pounds will be automatically converted in euro at the conversion rate, Û1 = £0.787564, free of charge.
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All services hitherto in Irish pounds will be in euro.
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All change will be given in euro.
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Credit Unions will, where feasible, exchange, for members, household amounts of Irish notes and coins for euro free of charge during the dual circulation period and for a time afterwards. A "household amount" means an amount up to an overall total of £500 per member.
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ATMs will begin to dispense euro notes. It is expected that, initially, Û10 and Û20 notes will be the predominant notes dispensed.
Retailers
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From 1 January 2002 retail outlets will charge customers in euro only. Retailers will accept Irish notes and coins until the end of the dual circulation period on 9 February 2002, but will give change in euro only. Where prices are dual displayed (ie. in Irish pounds as well as in euro), dual display will continue for information for at least one month after the end of the dual circulation period.
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Retailers will not be obliged to accept Irish notes or coins after 9 Feburary 2002.
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It is mainly through retail transactions that euro coins and low-value euro notes, in particular the Û5 note, will be put into general circulation. Accordingly, as already stated, it will be vital for retailers to calculate their requirements for euro cash well in advance and to make arrangements well in advance with their financial institutions/coin providers for obtaining their requirements, so that they will be in a position to give change only in euro from 1 January 2002.
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Retail Point-of-Sale systems, including cash registers and credit card and debit card systems, must convert to euro on 1 January 2002. When planning for this conversion, retailers should consult with their bank and with their equipment providers.
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Adequate training kits for retailers will be made available by 1 October 2001.
Coin Operated Machines
It is expected that the operators of coin payment machines will aim to have the bulk of their machines converted to accept euro coins by the end of two weeks from Û-Day.
General
This Plan has been approved by the Government. It was drawn up by the Cash Changeover Working Group of the Euro Changeover Board of Ireland in consultation with the Retail Working Group of the Forf‡s EMU Business Awareness Campaign, and has been approved by the Euro Changeover Board of Ireland: a list of the organisations which are represented on these bodies is shown in the Appendix.
The organisations involved in drawing up this Plan commit to carrying out the changeover to teh euro fairly and will seek no advantage from the conversion. The six digit conversion rate, Û1 = £0.787564, will be used in all price conversions and conversion will be carried out in accordance with EU rules. These commitments are in line with those contained in the Code of Practice on Dual Display of Prices drawn up by the Department of Enterprise, Trade and Employment and teh Office of the Director of Consumer Affairs, and for example in the Codes of Practice for the changeover to the euro drawn up under the auspices of the Irish Business and Employers Confederation, IBEC.
Implementation of the Plan will be supported by appropriate information programmes for business and the public, which will be developed in consultation with representatives of the relevant stakeholders. The Forf‡s EMU Business Awareness Campaign will provide information for the business sector, as will business, professional and trade associations. The public information programme will emphasise that between now and 1 January 2002 we should continue to carry out our normal cash transactions, using our remaining Irish notes and coins first and acquiring euro
January the use of euro notes and coins will be increasing, while the use of Irish pounds will be decreasing. This dual circulation period will end at midnight on Saturday February (date subject to Oireachtas approval). From that time, Irish notes and coins will no longer be legal tender, which means there will be no obligation to accept them as payment. Cash exchange as set out at No.7 above, and acceptance of lodgements of Irish notes and coins by banks, building societies, post offices and credit unions, will continue for a time after 9th February 2002. The Central Bank will of course continue to give value in euro for Irish notes and coins, indefinitely.
Appendix
The Euro Changeover Board of Ireland includes representatives from:
Central Bank of Ireland, The Chambers of Commerce of Ireland, Consultative Committee of Accountancy Bodies - Ireland, Consumers Association of Ireland, Department of Enterprise, Trade and Employment, Department of Finance, Department of Public Enterprise, European Anti-Poverty Network, European Commission Representation in Ireland, European Parliament Office, Forf‡s, Irish Bankers' Federation, Irish Business and Employers Federation, Irish Congress of Trade Unions, Irish Farmers Association, Irish Insurance Federation, Irish Mortgage and Savings Association, Irish Stock Exchange, National Lottery, National Women's Council of Ireland, Office of the Director of Consumer Affairs, Office of the Revenue Commissioners
The Euro Changeover Board of Ireland: Cash Changeover Working Group includes representatives from:
An Post, Central Bank of Ireland, Department of Finance, Department of Public Enterprise, Forf‡s EMU Business Awareness Campaign: Retail Working Group, Irish Bankers' Federation, Irish Business and Employers Federation, Irish Congress of Trade Unions, Irish League of Credit Unions, Irish Mortgage and Savings Association, National Social Services Board and a representative from the Vending Machine Industry
Forf‡s EMU Business Awareness Campaign: Retail Working Group includes representatives from:
Booksellers Association of Great Britain and Ireeland (Irish Branch), Forf‡s EMU Business Awareness Campaign, Institute of Chartered Accountants, Irish Bankers' Federation, Irish Business and Employers Federation, Irish Hardware Association, Irish Pharmaceutical Union, Irish retail Newsagents Association, Licensed Vintners' Association, National Federation of Retail Newsagents, RGDATA, Retail Jewellers of Ireland, The Society of the Irish Motor Industry, Vintners' Federation of Ireland
