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Euro Delivery Goes into Operations in 12 Euro Zone Countries

Euro Delivery Goes into Operations in 12 Euro Zone Countries

Posted August. 29, 2001 09:25,   


In one popular quiz show in France, questions on the euro appear with great frequency. The quiz show let players guess on the euro price of Electric appliances or furniture. If the players succeed in guessing the price, the prizes are theirs. This is one way of introducing the euro.

In Frankfurt, Germany, European Central Bank (ECB) will make a debut of the euro on the 30th, before the overall euro system is to begin from the first of January, next year. And from the first of September, the euro will be delivered to 12 European countries` bank under the utmost security.

@ The Operations of euro delivery = ECB plans to deliver total 600 billion euros to 12 countries from the first of the next month to the end of this year. For this, central banks of 12 countries have delivered euro to the coinage depository in secrecy from last week. The location and numbers of coinage depository and mint bureau were kept in secrecy. The euro will be delivered through train and truck, however thousands of tanks will be also mobilized for emergency.

From 22nd, France has embarked their confidential delivery and distribution operations of 32 thousands ton of the euro coin (four times heavier than tower Epel) to 81 depositories, including air force base and marine base in southeast. For the operations, satellite was also used as well as army and police. Even a torpedo destroyer was mobilized for the delivery to Corsica Island Bank.

German has finished the delivery of 60 billion euros. Italy mobilized more than 5000 police and has finished the delivery of 7.2 billion euro bills and 2.4 billion coin to 15 depositories in 24th and 25th. For the distribution of euro to banks, there will mobilized 50 armed trains and 200 trucks. Spain, Greece, and Austria, Netherlands also had finished the preparation for the delivery and distribution of euro starting from the third of next month.

Each financial body in euro zone will start to provide the euro to retail and wholesale dealers from 15~31 of December.

@ Advertisement of the euro = The franc is used less and less for various bills in France. One way of introducing euro and get people accustomed to the euro.

Members of the euro system are now speeding up the advertisement through pamphlet, Internet and conference, in preparation of the overall use of the euro.

Administration committee of European Union is operating a Euro Information Center to advertise the way of discernment of euro from counterfeit.

@ Prospect = Only 1.07 percent of total was paid by euro in July, the first month of euro notes, in France. France financial authorities expected half of the total and 70 percent would be paid by euro in summer and the early November. And this is a very disappointing result and also a proof that the recognition of euro is still low.

There are concerns that the euro will bring inflation in the euro zone. Because of the expense for euro exchange and parallel system of euro and one`s old monetary, merchants should increase customers` price, retail professionals say.

The inflation seems to be inevitable, even ATM and vending machine should be exchanged.

Counterfeit and money laundry is also a concern. So far, 100 dollar bill was a main way of black money concealment, however, 500 euro bill, a larger bill than 100 dollar bill, can be used as new black money. Despite positive prospect that euro will increase trade in euro zone, boosting the economy, there is still much more concerns than positive expectations.

Park Jei-Gyoon phark@donga.com