The Central Bank's currency unit has begun to produce euro banknotes in preparation for its introduction as legal tender from January 1st 2002. The bank has now started the production of 200 million euro banknotes with up to €4 billion scheduled to go into circulation in the Republic.
Consumers will have to get acquainted with seven euro banknotes and eight euro coins. The notes will range in value from €500 to €5, while the coins will range from €2 to one cent. The Central Bank began production of the euro coins last September.
Some €13 billion banknotes will be produced in the 11 states in the euro zone to replace the national currency banknotes in 2002.
Each member-state is responsible for the banknotes it will put into circulation. Production is monitored from a control centre in the European Central Bank in Frankfurt.
At a reception yesterday to mark the start of the printing of the new banknotes, Central Bank governor Mr Maurice O'Connell said the Republic has taken a further step towards making the euro a reality.
"A currency is a powerful symbol of identity. The new currency will bring home clearly to all of us the fact that we are now an integral part of a very large economic area, already embracing 11 states," he said. "It is not until it is used in everyday life that it will truly be recognised by the public at large as their own currency."
The Minister for Finance, Mr McCreevy, has indicated that Irish pounds and coins will be withdrawn as legal tender from February 9th, 2002, allowing a six-week gap for overlap of the two currencies. The Central Bank will continue to honour at face value all banknotes presented to it indefinitely.
All Irish banknotes and coins will have to be returned to the bank at that stage. Mr O'Connell said the production of euro banknotes and coins was stretching the bank's resources at its currency centre as it must also continue to meet the ongoing demand for the Irish currency.
"It does not help our case that demand for banknotes rose by more than 14 per cent and demand for coins by almost 28 per cent. There have been similar trends in other euro zone states," according to the governor.
Every household in the State will shortly receive information on the cash changeover, describing how the changeover will work and showing pictures of the euro notes and coins.
The Central Bank is now stressing that people should take their piles of hoarded coins out from their jam jars and drawers and start using them.
"This will ease the currency centre's burden now and will help to make the changeover to the euro as smooth as possible for everyone in 2002," he said.
