Circular D1/223 on the indication of exchange commissions for euro zone monetary units during the transitional period

COMMISSION BANCAIRE ET FINANCIERE
Prudential supervision of credit institutions
99 Louise Avenue, B-1050 Brussels telephone +32(2)535.22.11 - fax +32(2)535.24.96 (0) MOG*/DJM Brussels, 28 January 1999.
CIRCULAR LETTER D1/223 TO CREDIT INSTITUTIONS

Madam,
Sir,

Since 1 January 1999, the euro has become the legal currency of the member states participating in the European Monetary Union. During the transitional period running from 1 January 1999 to 31 December 2001, the national currencies of the participating member states constitute a non-decimal fraction of the euro.

Consequently, buying and selling rates no longer exist for the currencies of the member states participating in the European Monetary Union. For these currencies, exclusively the conversion rates defined by the European Council, as published in the Official Journal of the European Communities of 31 December 1998, apply.

The Royal Decree of 17 December 1998 (Belgian Monitor of 29 December 1998) concerning the indication of exchange commissions for the monetary units of the euro zone during the transitional period, a copy of which is attached, stipulates that from 1 January 1999 to 31 December 2001, the commission applicable to the exchange of banknotes of the member states of the European Union that have adopted the single currency must be indicated separately.

This means that the indication of the price charged for the exchange of banknotes of the euro zone countries must be done by the separate mention of the conversion rate fixed by the European Council and the commission applied.

Furthermore, Article 15 of the Royal Decree of 27 December 1994, as amended by the Decree of 20 September 1998, lists the mandatory details that must appear on the slip for spot exchange transactions. On this slip, the conversion rate as fixed by the European Council must appear as the rate for the banknotes of the euro zone countries, as well as the mention, indicated separately, of all other costs and provisions without these being counted in the rate charged.

Please accept, Madam, Sir, the expression of my distinguished sentiments.

The President,
J.-L Duplat.

Annex: one

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BELGIAN STATE GAZETTE - 29.12.1998 - BELGIAN MONITOR 41297 Art. 2. Our Minister of Economy and Our Minister responsible for Energy are responsible, each insofar as he is concerned, for the implementation of this Decree.
Given in Brussels, 16 December 1998.
ALBERT
By the King:
The Minister of Economy,
E. DI RUPO
The Minister responsible for Energy,
J.-P. PONCELET
N. 98 - 3520 [C - 98/11373]
17 DECEMBER 1998. - Royal Decree concerning the indication of exchange commissions on the exchanging of monetary units of the eurozone during the transitional period

ALBERT II, King of the Belgians,
To all who are now and hereafter shall be, Our Greeting.
Having regard to the Law of 14 July 1991 concerning commercial practices and the information and protection of the consumer, in particular Article 6, 1; Having regard to Regulation (EC) No 974/98 of the Council of 3 May 1998 on the introduction of the euro; Having regard to the Royal Decree of 23 March 1995 concerning the price indication of homogeneous financial services, amended by the Royal Decree of 1 March 1998, Having regard to the agreement of the Minister of Finance, given on 10 December 1998; Having regard to the Laws on the Council of State, coordinated on 12 January 1973, in particular Article 3, § 1, replaced by the Law of 4 July 1989 and amended by the Law of 4 August 1996; Having regard to the urgent necessity, motivated by the circumstance that from 1 January 1999 the euro will be the currency of the Member States of the European Union that adopt the single currency and that Regulation (EC) No 1103/97 of the Council of 17 June 1997 on certain provisions relating to the introduction of the euro, imposes the transition to the euro and the use of the conversion rates that will be adopted on 1 January 1999 for conversions between different national currencies; Considering that it is important that, in order to ensure fair competition and good information of the consumer, the commission that will replace the current margins for the exchange of banknotes of the participating states for the exchange of the European single currency, be indicated separately from the rates that will serve as reference; On the proposal of Our Vice-Prime Minister and Minister of Economy and of Our Minister of Agriculture and Small and Medium-sized Enterprises, Have We decided and decide We:

Article 1. In derogation of point V in the annex to the Royal Decree of 23 March 1995 concerning the price indication of homogeneous financial services, amended by the Royal Decree of 1 March 1998, the commission applicable to the exchange of banknotes of the Member States of the European Union that adopt the single currency, must be indicated in a separate manner.

Art. 2. This Decree enters into force on 1 January 1999 and ceases to be in force on 31 December 2001.

Art. 3. Our Vice-Prime Minister and Minister of Economy and Our Minister of Agriculture and Small and Medium-sized Enterprises are, each insofar as he is concerned, responsible for the implementation of this Decree.

Given in Brussels, 17 December 1998.
ALBERT
By the King:
The Vice-Prime Minister and Minister of Economy, E. DI RUPO The Minister of Agriculture and Small and Medium-sized Enterprises, K. PINXTEN

1 98 - 3520 (C - 98/11373]
17 DECEMBER 1998. - Royal Decree concerning the indication of exchange commissions for the monetary units of the euro zone during the transitional period

ALBERT II, King of the Belgians,
To all, present and future, Greeting.
Having regard to the Law of 14 July 1991 on commercial practices and on the information and protection of the consumer, in particular Article 6, Having regard to Regulation (EC) No 974/98 of the Council of 3 May 1998 concerning the introduction of the euro; Having regard to the Royal Decree of 23 March 1995 concerning the indication of tariffs for homogeneous financial services, amended by the Royal Decree of 1 March 1998; Having regard to the agreement of the Minister of Finance, given on 10 December 1998; Having regard to the Laws on the Council of State, coordinated on 12 January 1973, in particular Article 3, § 1, replaced by the Law of 4 July 1989 and amended by the Law of 4 August 1996; Having regard to the urgency motivated by the circumstance that from 1 January 1999 the euro will become the currency of the Member States of the European Union that adopt the single currency and that Regulation (EC) No 1103/97 of the Council of 17 June 1997 fixing certain provisions relating to the introduction of the euro, imposes the transition to the euro and the use of the conversion rates that will be adopted on 1 January 1999 for conversions between different national currencies; Considering that, in order to ensure fair competition and good information of the consumer, it is important that the commission that will replace the current margins for the exchange of banknotes of the countries participating in the European single currency be indicated separately from the rates that will serve as reference; On the proposal of Our Vice-Prime Minister and Minister of Economy and of Our Minister of Agriculture and Small and Medium-sized Enterprises, Have We decided and decide We:

Article 1. By derogation from point V of the annex to the Royal Decree of 23 March 1995 concerning the indication of tariffs for homogeneous financial services, amended by the Royal Decree of 1 March 1998, the commission applicable to the exchange of banknotes of the Member States of the European Union that adopt the single currency, must be indicated separately.

Art. 2. This Decree enters into force on 1 January 1999 and ceases to be in force on 31 December 2001.

Art. 3. Our Vice-Prime Minister and Minister of Economy and Our Minister of Agriculture and Small and Medium-sized Enterprises are responsible, each insofar as he is concerned, for the implementation of this Decree.

Given in Brussels, 17 December 1998.
ALBERT
By the King:
The Vice-Prime Minister and Minister of Economy, E. DI RUPO The Minister of Agriculture and Small and Medium-sized Enterprises, K. PINXTEN