National Bank Ready For Rendezvous With Euro

As of January 1, 2002, twelve member countries of the European Currency Union, hereafter referred to as ECU, are to switch over to euros, with their national currencies gradually being withdrawn from circulation. The new currency will also be exchanged through the network of ECU banks. With this purpose, the European Central Bank has set fixed national currency rates versus the euro. For instance, in Germany one euro will be exchanged for DEM 1.9558, in France for FRF 6.5596, etc.

In non-ECU countries, Ukraine included, national currencies will begin to be exchanged for euros in January, 2002 by authorized banks, the National Bank of Ukraine stated on October 29. The exchange will be carried out at the official ECU rate plus interest to cover banks expenses for the shipment of euros to and the outgoing European currencies from Ukraine. During the exchange, no mandatory tax to the Pension Fund will be charged. After the expiration of the exchange deadline in the ECU member states (July 2002 in most of the countries, and, following the completion of parallel circulation of marks and euros, February 2002 in Germany) the authorized banks will carry on exchange transactions charging higher rates.

To minimize the costs of exchanging the outgoing European currencies for euros, the National Bank recommends making deposits of the outgoing European currencies in Ukrainian authorized banks in the near future. The NBU will itself convert the accounts opened in the ECU currencies in October through yearend into euro accounts at the exchange rates set by the ECU. The opening by Ukrainians of accounts in the out-going European currencies will make it possible for commercial banks to ship banknotes to the European Currency Union and bring in the required amounts of euros at favorable rates, an NBU press release says.