By late this month, the Central Bank of Malta will start the pre-distribution of euro coins especially to banks. This means the euro coins will be arriving in Malta in the next few days.
A publication that will be distributed to households in the coming days will make, in the meantime, interesting reading. It shows the similarities but also the divergences between the way the euro will be introduced to Malta and the way it will be introduced to Cyprus
Dual display of prices
In Malta, businesses were invited to display prices in both currencies on a voluntary basis from January 2007.
Once the irrevocably fixed conversion rate was established on 10 July, it became obligatory for all businesses to display prices in both euro and Maltese lira.
The dual display of prices will last until 30 June 2008. Businesses in Malta will then be given three months – to 30 September 2008, to make the transition to display prices in euro only.
In Cyprus, the dual display of prices became obligatory on 1 September and will last until 30 September 2008 – a total period of 13 months.
Did you know that…
• By mid-January 2002, over 90 per cent of all cash transactions were being carried out in euro, although two months had been foreseen for the transition. This is why most of the future members of the euro area may well opt for a shorter dual circulation period.
• At the end of 2006 some 11 billion banknotes, worth roughly EUR600 billion, were in circulation compared with close to eight billion banknotes worth EUR 221 billion at the beginning of 2002. Although euro banknotes and coins are legal tender throughout the euro area, regardless of where they were produced, they also move freely across borders as a result of tourism and business transactions. The euro has also become a popular currency worldwide. It is estimated that at least some 15 per cent of euro banknotes in circulation are held by individuals and businesses outside the euro area.
• The euro bank notes in Cyprus and Malta will come from the Eurosystem’s banknote stocks. Cyprus’ euro coins will be produced by the Mint of Finland and Malta’s euro coins by the Monnaie de Paris.
• The Central Bank of Malta will acquire 80 million euro banknotes to replace the Maltese lira. Placed end to end, they would cover the distance from Malta to Las Vegas.
• The Central Bank of Cyprus will acquire 79 million euro banknotes to replace the Cyprus pound. If these banknotes were placed end to end, they would cover the distance from Cyprus to London three times.
• 200 million euro-denominated coins will initially be minted for Malta by Monnaie de Paris. These will weigh around 950 tonnes, which is equivalent to three and a half times the typical operating weight of an Airbus A380.
• 395 million euro coins will initially be minted for Cyprus. Around 100 goods containers will be used for their transportation from the Mint of Finland.
Euro banknotes security and fraud
The cash cycle can be shortened if banks recirculate the banknotes they receive from their customers. This avoids the need of the transportation of banknotes back to the central bank and their withdrawal again by the bank.
Back in 2002, the European Central Bank established terms of reference for the operation of stand-alone, customer-operated machines that can receive, process and dispense banknotes, the so-called cash-recycling machines.
Banks and other professional cash handlers should only use cash-recycling machines that can detect banknote counterfeits and sort banknotes according to their quality.
The euro meanwhile has been specially designed to reduce the threat of counterfeit. As will be explained in great detail to the public in a media campaign, which will begin soon, euro banknotes include some high-tech security features that makes them easy to identify from counterfeit:
• FEEL the crisp and firm banknote paper, feel the raised print, run your finger across the front of the banknote – or scratch it gently with your fingernail – and you will feel that the ink is thicker in some parts.
• LOOK at the banknote and hold it against the light to see the watermark, the security thread and the see-through number. All three features can be seen from the front and back of a genuine banknote.
• TILT the banknote to see the hologram stripe or patch – the glossy stripe (on the EU 5, EUR10 and EUR20 banknotes) and the colour-changing number (on the EUR50, EUR100, EUR200 and EUR500 banknotes)
What to do if you receive a suspect banknote
• Do not get into an argument with the customer
• Tell him/her that you need to speak briefly to your supervisor or a security officer, but ensure that the customer can always see the banknote in order to avoid any complaints.
• Get your supervisor or the security officer to speak to the customer.
• Make a mental note of the customer’s appearance.
• If at all possible, do not return the banknote to the customer.
• Try to stall him/her, but do not put yourself at risk.
• If the customer tries to leave the premises, despite being asked to wait for the police, do not prevent him/her from leaving. If he or she leaves by car, make a note of his/her number plate and the car.
• Contact the police.
• Hand over the suspect banknote without delay to your supervisor or security officer for forwarding to the police.
• Do not try to be a hero – make sure you are safe at all times.
And
• Understand that the experience of other countries has shown that counterfeit fraud in the euro area is as rare as it is in the other big currency areas, possibly less due to the increased security features.