AUSTRALIAN BANKS SAY GET READY FOR THE SINGLE EUROPEAN CURRENCY – THE EURO Information for Bank Customers About the Euro Sydney, 20 August, 2001: Australian banks are preparing for the introduction of the euro which will be the currency used for all transactions in the 12 European Union countries which are soon replacing their national currencies. Chief Executive of the ABA, David Bell, said from 1 January 2002 new euro notes and coins will be introduced in the 12 European Union countries, also known as the Euro zone, and the national currencies will be withdrawn. Mr Bell said the countries which will have their currencies replaced by the euro are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, The Netherlands, Portugal and Spain. "The introduction of this new currency has implications now for bank customers who intend making any transactions in the Euro zone national currencies or the euro, " Mr Bell said. "For example, some bank customers may send or receive money from the Euro zone, others may intend to travel to the Euro zone over Christmas and New Year, or some might retain accounts in the currencies of the Euro zone," he said. "To ensure a smooth transition to the euro, Australian banks are now preparing for the introduction of the euro and the phasing out the currencies of the Euro zone or the legacy currencies." "Bank customers who wish to send money to relatives who live in Euro zone countries will soon be advised by their banks to send the payment in euro." "Bank customers don't need to worry about their relatives being worse off because the conversion rate of the euro to 12 legacy currencies is FIXED." "Buyers and sellers of euro are no better or worse off by using euros instead of the legacy currencies." (see table below for conversion rates) "Of course, the value of the euro does rise and fall in relation to non-euro currencies such as our dollar, the US dollar or the British pound." Mr Bell said anyone travelling to the Euro zone in the New Year would immediately notice differences. "From the 1 January 2002, shops and businesses in the Euro zone may start to charge in euro rather than legacy currencies and cash machines may also start to dispense euro notes." "Travellers in the Euro zone will be able to use the old notes and coins using the fixed conversion rates but only for a short time." "Don't hold onto your surplus foreign currency when travelling because the exchange of the legacy currencies in Europe will become increasingly difficult after February 2002." "Euro travellers cheques are now available from selected Australian bank branches." "Ultimately, in the Euro zone, currency exchange will cease - which means no more currency exchange commission is to be paid, no more time spent calculating price comparisons and no more time shopping around for the best exchange rate." "I would advise bank customers not to hold onto their surplus legacy currencies of the Euro zone if you are returning from holiday to Australia or have any stored at home. "The conversion period when the legacy currencies will be accepted in Australia will be short and changing legacy currency notes at Australian banks will become increasingly difficult after January 2002." "Once euro cash is available, likely to be from 1 January 2002, our banks will sell euro, rather than cash in legacy currencies – if you wish to take cash when travelling." Mr Bell said if bank customers receive money from the Euro zone in a legacy currency for example, a bank draft, immediately contact your bank, so staff can advise you on the arrangements for processing the transaction. "If anyone has an old cheque or bank draft stored at home, I would advise presenting it to your bank as soon as possible, " he said. Mr Bell said banks will contact those customers who have Australian bank accounts denominated in legacy currencies because they will be exchanged into euro - customers will be no better off or worse off because the conversion rate is fixed. Editors Note: Please note - depending on the bank, and the arrangements a customer has with their bank, currency transactions usually attract fees. Which countries will have their currencies replaced by euro? The countries of the Euro zone are located in Western Europe 1. Austria  7.   Ireland 2. Belgium  8.   Italy 3. Finland  9.   Luxembourg 4. France 10. The Netherlands 5. Germany 11. Portugal 6. Greece 12. Spain Denmark, Sweden, Norway and the UK are part of the European Union, however these countries are not part of the Euro zone. How much is a euro worth? 1 Euro = Country Code Fixed Rate Austria  ATS    13.7603 Belgium  BEF    40.3399 Finland  FIM    5.94573 France  FRF    6.55957 Germany  DEM    1.95583 Greece  GRD    340.75 Italy  ITL    1936.27 Ireland  IEP    0.787564 Netherlands  NLG    2.20371 Portugal  PTE    200.482 Spain  ESP    166.386 Luxembourg  BEF    40.3399   For Further Information Contact:   Heather Wellard ABA PR Phone: 02 8298 0411 Mobile: 0409 830 439   ENDS