Region

Jurisdiction

Regulator

1998-01-01

Bank of Zambia Circular 10/1998: Introduction to the Euro

The Bank of Zambia requires all commercial banks to prepare for and familiarize themselves with the Euro as an additional major operating currency ahead of its legal introduction on 1 January 1999. During the three-year transition period ending 31 December 2001, participating European national currencies will coexist with the Euro before physical banknotes and coins replace them in January 2002. Banks requiring technical guidance on Euro operations should contact the Financial Markets Department for further information.

Zambia

Bank of Zambia

BANK OF ZAMBIA  
P.O. Box 30080  
Lusaka 10101  
Zambia  

GOVERNOR'S OFFICE  
Tel.: 228888/223307  
Telex: ZA 42999  

2 December 1998  

C B Circular No. 10/98  

To : All Commercial Banks  

Dear Sirs  

## INTRODUCTION TO THE EURO  

As you may be aware, the Economic and Monetary Union (EMU) is due to start on 1st January 1999 and will see the introduction of the new single currency, the Euro, as the legal currency in each participating country. The existing currencies will become "expressions" of the Euro. In practice, the national currencies will still operate side-by-side with the Euro throughout the three-year transition period to 31st December 2001. From January 2002, bank notes and coins denominated in Euro will be introduced and old currency notes and coins will be withdrawn, thereby finalising the conversion.  

To this effect, the Bank of Zambia would like to advise commercial banks to fully prepare themselves with operating an extra major currency. Although national currencies of the 11 participating European countries will continue to operate for another three years, commercial banks should ensure early familiarisation with the Euro.  

Bank of Zambia would like to invite all commercial banks requiring information on the Euro to contact the Financial Markets Department at the Bank of Zambia.  

Yours faithfully  

Dr Jacob M Mwauza  
GOVERNOR