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AMERICAN
EXPRESS MAKES ITS FIRST EURO TRANSACTION
The
first American Express euro transaction in the world was conducted
in Australia today at 12am EST (1pm GMT), in an American Express
Foreign Exchange Office overlooking Sydney Harbour’s New Year’s
Eve fireworks display – an extravagant beginning for the long
awaited currency.
Mr
Brendan Walsh,
Senior Vice President and General Manager of American Express
Foreign Exchange Services, says “the
introduction of the euro brings with it a new era for over 300
million people in Europe and for millions of travellers all around
the world. There is no real precedent for such a large change in
popular behaviour.
“As
of today, 50 billion new coins and 14.5 billion notes will be
pressed into circulation with the goal of having most cash
transactions handled in euro within two weeks. There
will be a dual cash period of around two months where national
currency will exist alongside euro currency. After this time, only
the euro will be valid for every day use,” Mr Walsh said.
“The
most important thing for travellers is they will now be able to
travel with one euro-denominated currency for use in all twelve
participating countries. This means no more exchange commissions,
time wasted calculating price comparisons and shopping around for
the best exchange rate. Also, they won’t have to work out
beforehand how much money they will be spending in each country.”
The
euro replaces the
national currency of 12 participating European Union (EU) countries,
including Austria, Belgium, Finland, France, Germany, Greece, Italy,
Ireland, Netherlands, Portugal, Spain and Luxembourg. It will
co-exist with local currencies until they are no longer legal tender
(28th February 2002 for all except Germany on 1st
January, Netherlands on 27th January, Ireland on 9th
February and France on 17th February).
“This
‘dual currency’ period is likely to be a time of confusion for
most people, so the use of payment cards and euro travellers cheques
will be an attractive option as they will offer the simplest means
of making payments in euros,” Mr Walsh said.
“American
Express has a dedicated team working on the euro to ensure the
transition is smooth for customers throughout Europe - our systems
are ready, our merchant network is ready and our customer service
operations are ready. We have also participated in the Partnership
Program initiated by the European Central Bank and have assisted
them in their drive to raise awareness of the new currency across
Europe.
"The
euro marketplace is not new to American Express, as we have been
offering euro Travellers Cheques since January 1999. The euro
Travellers Cheque has been very successful to date and we anticipate
it becoming more popular over the next few months. American Express
Travellers Cheques offer a simple, reliable and secure way to pay for
goods and services, and if they are lost or stolen,
they can be replaced usually within 24 hours.”
To
make the transition as easy as possible, American Express offers the
following advice for people in the 12 euro zone countries and for
those travelling to the euro zone from elsewhere:
For
people in the euro zone -
Consider
using credit and charge cards for the first few weeks.
This
will make everyday purchases easier to manage and voids the potential
losses from paying in one currency and getting the change back in
another. American Express will render statements in both euro and
legacy currencies until March 2002, which will help consumers get
adjusted to the new currency.
Buy
a small wallet-sized calculator and pre-program the legacy currency to
euro exchange rate. Many luggage and small electronics stores also sell battery powered
currency converters. Or write the exchange rate on a small calculator
you already have and use it until you are used to the new currency.
If
you are more mathematically inclined, memorise a simple formula you
can use to make quick conversions. For
example, at 1.96 Deutsche mark to the euro, you would simply multiply
by two to get a rough DM equivalent. Therefore, a pair of shoes
costing 100 euro would be about DM 200.
Convert
your family budget to euro. Having
a family budget is always a good idea, but working it through in euro
will help you determine what your common expenses will cost in the new
currency and how much you earn and pay taxes in euro. Do the same with
a household balance sheet: list the values of your important assets
(savings and investments, home and automobile) in euro.
Establish
an ‘emergency’ fund with leftover ‘legacy’ currency.
Instead
of cashing in old currency for new euros, use it to buy
euro-denominated travellers cheques. They are safe, can be replaced
and are a good store of value for household emergencies or in
disasters when ATMs may not be available.
For
travellers entering the euro zone -
Mixing old and new. Although euros will be
available both via automated teller machines and foreign exchange
offices, most countries will continue to use their currency alongside
the euro for the first few weeks of 2002.
You may want to consider paying by card to avoid any confusion. Local currencies will be withdrawn from circulation at
various times up to the end of February
2002.
Check your change. It is likely that prices will continue to be displayed in both euro
and local currency. To
avoid any potential confusion, always remember to check your change. If you are paying by card, it’s a good idea to check
whether the transaction slips are in euros or the national currency,
to avoid being incorrectly charged.
Getting euro savvy.
Familiarise yourself with the new designs. The euro notes will come in
values of 500, 200, 100, 50, 20, 10 and five, with coins of one, two,
five, 10, 20 and 50 cents and one and two euros.
Illustrated with bridges, gateways and windows the notes will
include a watermark, security thread and hologram showing the value
and euro symbol. The
coins will have one common side and one national side, but each
country’s coins can be used in any other euro country.
As of December 20 one euro had a value of 90 cents in U.S.
currency.
How
much does it cost in euro?
1
EURO =
|
|
|
Cup
of coffee
|
10km
by taxi
|
CD
|
Litre
of milk
|
Tube
of toothpaste
|
Daily
newspaper
|
2.20371
|
Netherlands
Guilders
|
Amsterdam
|
1.6
|
17.2
|
21.6
|
0.8
|
1.6
|
0.9
|
340.750
|
Greek
Drachma
|
Athens
|
2.8
|
4.5
|
17.6
|
1.1
|
2.5
|
0.6
|
1.95583
|
German
Marks
|
Berlin
|
2.0
|
14.3
|
19.2
|
0.9
|
1.8
|
1.0
|
40.3399
|
Belgian
Francs
|
Brussels
|
2.0
|
11.8
|
19.2
|
0.6
|
1.5
|
0.7
|
0.787564
|
Irish
Punts
|
Dublin
|
2.5
|
9.5
|
19.0
|
0.9
|
2.4
|
1.1
|
5.94573
|
Finnish
Markkas
|
Helsinki
|
2.5
|
12.2
|
21.7
|
0.6
|
2.0
|
1.7
|
200.482
|
Portuguese
Escudos
|
Lisbon
|
0.8
|
4.5
|
18.3
|
0.7
|
1.8
|
0.7
|
40.3399
|
Luxembourg
Francs
|
Luxembourg
|
2.2
|
20.1
|
19.8
|
0.7
|
2.6
|
0.7
|
166.386
|
Spanish
Pesetas
|
Madrid
|
1.4
|
6.9
|
19.8
|
0.6
|
2.6
|
0.8
|
6.55957
|
French
Francs
|
Paris
|
1.8
|
8.8
|
21.5
|
1.0
|
2.6
|
1.1
|
1936.27
|
Italian
Lira
|
Rome
|
2.1
|
9.1
|
19.9
|
1.2
|
2.2
|
0.8
|
13.7603
|
Austrian
Shillings
|
Vienna
|
2.9
|
11.4
|
21.7
|
0.8
|
2.1
|
1.1
|
|
|
|
|
|
|
|
|
|
EURO
|
Average
|
|
2.1
|
10.8
|
19.9
|
0.8
|
2.1
|
0.9
|
*Prices
as at June 2001
|