Free foreign exchange service to accompany launch of euro

The Central Bank will be providing a free foreign exchange service at its Dame Street headquarters from January 1st.

All central banks across the euro area are obliged by law to provide the free service. Consumers will be able to change any of the euro area's 11 currencies in the Dame Street offices. A spokesman for the Bank confirmed that the service will be available in its main reception area there.

Last July, the governing council of the European Central Bank (ECB) laid down guidelines on how the system would operate.

It stated that each central bank would have to provide the foreign exchange service in at least one location. The banks in France, Germany and Spain will be providing it at a number of locations but Ireland at one only. In other states, the service will also be provided on an agency basis, but the Irish Central Bank rejected that option.

The ECB also said that the system should be aimed at the general public rather than at businesses. Thus, the maximum single transaction will be £1,000 or 50 notes, whichever is lesser.

However, article 52 of the Maastricht Treaty is not so precise.

It states: "Following the irrevocable fixing of exchange rates, the Governing Council shall take the necessary measures to ensure that bank notes denominated in currencies with irrevocable fixed exchange rates are exchanged by the national central banks at their respective par values."

Ms Carmel Foley, the new Director of Consumer Affairs, welcomed the new service as an extra outlet which will make life easier for the ordinary individual. "It is an additional service and is very welcome from my point of view," she said.