Euro Becomes Official Currency for 11 European Countries-* ANTI-EURO GROUP SAYS BRITAIN BETTER OFF OUTSIDE -* IRANIAN OFFICIAL SAYS EURO TO EASE DOLLAR DOMINATION -* JAPAN TO PROPOSE NEW EURO-YEN-DOLLAR MONETARY SYSTEM
January 2, 1999 - 0:0
BRUSSELS The euro officially became legal tender in 11 countries of the European Union at midnight (2300 GMT) Thursday. The single European currency may be used by some 291 million people in all transactions, following the fixing Thursday of the fixed parity rates with the 11 currencies of the participating states. Little trading in the new currency would be taking place before Monday, when markets open after the new year holidays, but it was expected to weigh in at around 1.16 to the dollar and 132.80 Japanese yen.
Euro notes and coins will also not be in circulation for three years, but consumers can hold bank accounts in the new currency, pay bills and make purchases with cheques and credit cards. The countries participating in the euro are Austria, Belgium, Germany, Finland, France, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Of the remaining four EU states, Greece failed to meet the qualifying conditions but hopes to be ready to join in 2001.
Britain, Denmark and Sweden all could have joined but decided not to because of political reservations. Hours away from the launch of the single European currency, a group of leading British business chiefs said Britain was better off outside it. In a letter to Friday's edition of the Times, the 18 businessmen and top economists, members of an anti-Euro group, said Britain's prospects outside the 11-nation euro zone were bright.
Having restored sterling's reputation for financial discipline, let us have the confidence to keep it, they wrote. What is right for Britain will be good for Europe too. The members of the anti-euro campaign group business for sterling wished the new currency well: No British interest will be served if our European partners have an unstable currency. A senior Iranian banking official on Thursday welcomed the upcoming introduction of the euro, saying it would curb the global domination of the U.S. dollar, Iran's state television reported.
The circulation of the European currency will decrease the domination of the dollar on the economy of world countries, including Iran, the television quotes Nowrouz Kohzadi, head of the state Export Promotion Bank, as saying. The introduction of the euro will increase competition among producers and cut prices of goods in 11 European countries. Therefore, Iran's imported goods will become cheaper and grounds will be laid for boosting non-oil exports to these countries, Kohzadi said.
He advised exporters to open euro accounts in the 11 countries where the euro introduced on Friday. Tehran radio said Iran's Central Bank on Thursday authorized importers and exporters to use the euro in their transactions. Japan's Prime Minister Keizo Obuchi will propose the creation of a new monetary system based around the key euro, dollar and yen currencies when he visits Europe next week, a newspaper said Friday. Japan wants a system that will limit exchange rate volatility and increase the yen's presence on expanded markets for short-term Japanese government bonds, the Nihon Keizai Shimbun said.
The prime minister will make the proposal when he meets government leaders during his week-long trip to France, Italy and Germany from Wednesday, the Economic Daily said. Foreign Minister Masahiko Komura congratulated the European Union on the launch of the euro, describing it as a historic first step in the process of European integration. I hope that the euro will become a stable, reliable currency for the benefit of the international community, he said in a statement.
The Europe is worth 1.95583 German marks, 6.55957 French francs, 1,936.27 Italian lire, 40.3399 Belgian or Luxembourg francs, 2.20371 Dutch guilders, 166.386 Spanish pesetas, 200.482 Portuguese escudos, 13.7603 Austrian schillings, 0.787564 Irish punts and 5.94573 Finnish markka. {ECO]
Euro notes and coins will also not be in circulation for three years, but consumers can hold bank accounts in the new currency, pay bills and make purchases with cheques and credit cards. The countries participating in the euro are Austria, Belgium, Germany, Finland, France, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Of the remaining four EU states, Greece failed to meet the qualifying conditions but hopes to be ready to join in 2001.
Britain, Denmark and Sweden all could have joined but decided not to because of political reservations. Hours away from the launch of the single European currency, a group of leading British business chiefs said Britain was better off outside it. In a letter to Friday's edition of the Times, the 18 businessmen and top economists, members of an anti-Euro group, said Britain's prospects outside the 11-nation euro zone were bright.
Having restored sterling's reputation for financial discipline, let us have the confidence to keep it, they wrote. What is right for Britain will be good for Europe too. The members of the anti-euro campaign group business for sterling wished the new currency well: No British interest will be served if our European partners have an unstable currency. A senior Iranian banking official on Thursday welcomed the upcoming introduction of the euro, saying it would curb the global domination of the U.S. dollar, Iran's state television reported.
The circulation of the European currency will decrease the domination of the dollar on the economy of world countries, including Iran, the television quotes Nowrouz Kohzadi, head of the state Export Promotion Bank, as saying. The introduction of the euro will increase competition among producers and cut prices of goods in 11 European countries. Therefore, Iran's imported goods will become cheaper and grounds will be laid for boosting non-oil exports to these countries, Kohzadi said.
He advised exporters to open euro accounts in the 11 countries where the euro introduced on Friday. Tehran radio said Iran's Central Bank on Thursday authorized importers and exporters to use the euro in their transactions. Japan's Prime Minister Keizo Obuchi will propose the creation of a new monetary system based around the key euro, dollar and yen currencies when he visits Europe next week, a newspaper said Friday. Japan wants a system that will limit exchange rate volatility and increase the yen's presence on expanded markets for short-term Japanese government bonds, the Nihon Keizai Shimbun said.
The prime minister will make the proposal when he meets government leaders during his week-long trip to France, Italy and Germany from Wednesday, the Economic Daily said. Foreign Minister Masahiko Komura congratulated the European Union on the launch of the euro, describing it as a historic first step in the process of European integration. I hope that the euro will become a stable, reliable currency for the benefit of the international community, he said in a statement.
The Europe is worth 1.95583 German marks, 6.55957 French francs, 1,936.27 Italian lire, 40.3399 Belgian or Luxembourg francs, 2.20371 Dutch guilders, 166.386 Spanish pesetas, 200.482 Portuguese escudos, 13.7603 Austrian schillings, 0.787564 Irish punts and 5.94573 Finnish markka. {ECO]