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

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From January 2002, bank notes and coins denominated in Euro will be introduced and old currency notes and coins will be withdrawn, thereby finalising the conversion.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