Euro information

Melvyn Mangion from the National Euro Changeover Committee answers your questions on the euro.

As we are getting closer to the changeover and we still have many questions and answers to feature, from now on we will answer four questions every week:

During the changeover to the euro, how will cheque payments be made?

Bank customers may issue cheques denominated in Maltese lira only up to December 31, 2007, and these will be accepted for payment for the normal validity period of six months from date of issue. Cheques dated as from E day onwards may only be denominated in euro.

As a retailer do I have to change the cash register when the dual display of prices comes into effect or following the changeover to the euro?

Cash registers do not need to be modified since the same decimal system will be maintained. It is only the total bill or receipt amount that needs to be displayed in both the Maltese lira and the euro, hence it is only the E symbol that needs to be shown on the receipt.

Should this not be possible then EUR can be used alternatively to the E symbol. Should this not be possible conversion tables have to be provided at point of sale.

As a business person, when is the ideal time to develop a changeover strategy?

Careful planning and co-ordination, and early well preparedness will reduce implementation costs and minimise disruption. The euro changeover presents challenges and opportunities, and early preparation ensures a smooth transition.

The NECC is providing assistance and information to business organisations that are keen to learn more about the changeover process. It is useful, however, to start preparing as of now since delaying preparations will not be in your business interests.

What benefits does my business stand to gain from the adoption of the euro?

The elimination of foreign exchange risk, cheaper cross-border transaction costs and the transparency of prices within the Eurozone will generate a positive impact on the business sector.

The cost and complexity of dealing with several currencies will be reduced and will disappear for companies active inside the euro area. The euro is also expected to stimulate intra-European trade and attract additional investment.