As I understand it, the Euro will go into paper and coin circulation on January 1, 2002. At that time, all the currencies that are currently in circulation will be exchangeable for the equivalent in Euros (say that 5 times fast!). So, the French franc, German mark, et al., will be worthless after the cut-off date for exchange. Or will they?
Is there any collector value to keeping, say, a bunch of 500 French franc notes (they are worth just under $80 each)? I mean, at that value not many people are going to be keeping them (lower supply), or at least I don’t think they would. Does anyone know of a precedent? Do governments (after the cut-off date obviously) sell the currency as collectibles? Any ideas?
So the notes aren’t worthless after that date. Which actually makes your proposed investment quite a bit sounder, since no matter what happens, the value will never drop below the price you bought them at it.
I’ll echo SmackFu. Each participating national central bank will exchange currency of any other participating country into euros at the official conversation rate, with no surcharge or commission. The banks may limit the number or value of transactions they will accept in a single day.
Commercial banks and beureaux de change are not bound by this regulation but are, um, strongly encouraged to comply; any handling charges must be “clear and transparent.”
There’s a bunch of technicagl regulations as well, on things like mutilated bills, etc.
For the first six months of 2002, there will be dual legal tender curriences, although this period may be shortened. Lots of the duty-free shops at the European airports work this way now, they’ll accept almost any currency but they give change in their local currency; I suspect that will be the way shops handle dual currencies as well, they’ll still accept francs (for instance) but will give change in euro.
If you’re planning to hold onto notes for collector purposes, be sure to get new crisp bills rather than ratty torn dog-eared ones. I suspect that any collector value will be only after VERY long term, like decades, but I don’t profess to be an expert in collectibles.
If you put away a Swiss 1000 franc banknote, for example in 1975, and it was in decent average condition, you would, in your nievete’, assume you could cash it in somewhere in the world today at the current exchange rate which would be US $620. Wrong! (Apologies to Arnold).
Swiss notes issued prior to 1976 are no longer cashable. You lose. They have a collector value which is far less than current exchange value and you held them for 27 years at no interest. Smooth move.
The suggestion by Dex that you should only hold a crisp uncirculated note is sound, but you probably will still loose. This is based on my experierence of buying and selling coins and banknotes as my profession the last 30 years.
Well samclem you learn something new every day. I didn’t know that swiss bills before 1976 are no longer valid! I’ll have to ask my father if he’s aware of the issue, he’s a coin collector.
coldie I should have indicated that I was using Swiss currency as an example because everyone in the world thinks of Switzerland as the ultimate in financial security.
As far as I know, it will be very difficult to exchange national currencies into euros after June 30, 2002. At least that’s what all the information kits they have here in Germany say. I would only consider keeping old money for sentimental reasons. I highly doubt that the money people use here every day now will be worth anything in particular even twenty years from now. Besides which, I’ve heard that the German mint will be stockpiling the money at first since it’s very hard to recycle the stuff (with all the holographs and security thingies in it.) You’re better off collecting stamps and phone cards.
First, my comment about the requirement to convert currencies to euro at the fixed exchange rates (with no handling charge) applied ONLY to the central banks of each country and their agencies. Commercial banks etc (like the exchange kiosks at airports that are not affiliated with the central bank) are encouraged to do so, but not required.
Furthermore, this requirement applies only for the first six months after 1 January 2002. After that, it’s a market game. Whether you will be able to convert notes or not and at what rate will depend on what the banks want to do; you will probably NOT be able to use such notes for purchases after 1 July (and perhaps that date will be moved up.)
Second, my comment about holding crisp new notes was prefaced by saying “IF you’re planning to hold onto notes for collector purposes…” [emphasis added]. I certainly wasn’t recommending it.
I don’t think there will be much collectors value because the notes were so plentiful, and if there is any such it will only be decades hence, and whether such bills will be worth more than the face value, who can say. The collectible value would have to exceed the increase in consumer prices for such to pay off. But then, I’m the one whose mother threw away all the 1950s SUPERMAN comics when I went to college, so don’t ask me about collectibles.
DDR Marks (East German) could be exchanged at par through the banks for a long time. They are now worthless too. The “operative” word here is “long”. How long after is “long”?
C K, I think you’re probably right, unfortunately, although it will be interesting to see what tactics the government uses to force an extremely reluctant people to join the euro, as they will lose a referendum (motion to join) as things stand.
The day the government pledges to join, I will tearfully make my plans to leave my country.
That is, joking about leaving the country over the currency for a place that has another currency anyway. Not about the euro eventually coming to Britain, I reckon you wouldn’t joke about a thing like that.
Joking? I never joke about the conspiracy they call the EU.
The government would lose a referendum if it were held now, and I can’t see public opinion being turned around until real scare tactics are used, which they will be. Just wait for the ‘Euro or Giro’ slogans to come out!!
I assume you meant that ‘leaving the country’ was a joke. Nope. Deadly serious.
Why would he be joking?? We are talking about a government that does not care what it’s people want, they are simply going to do it against overwhelming opposition, possibly AFTER it has been rejected in a national vote!
The very foundation of democracy is that the majority rules, and Tony Blair seems to be on his way to finding a way around that.
I think if ol’ W. decided to do something that he knew practically every american vehemently opposes, there would be quite the outcry. These people are elected to do the will of the people, not the will of their allied nations.
This is sort of an issue for me, 'cause I used to live in England.
I know it’s no joking matter for you, but leaving the country would be a bit drastic. I mean where would you go? Anyway, Britain is still a democracy, I believe, so work on it yourselves.
Having said all that, I live in Germany, and am more than happy with the euro (which we de facto already have since 1999). And I don’t see the EU as a conspiracy, but as a necessity in this day and age in Europe, albeit with plenty of flaws and mistakes. If you don’t like it, vote to leave the EU – as is (or at least should be) your right. I spent a few months in England last year, and was actually a bit taken aback by the anti-European sentiment among some of the population. At the same time, good friends of mine in Britain are all for the EU and the euro. At the end of the day, the world is now getting smaller and more interconnected (as this very discussion in the internet proves) so developments like these are bound to happen.
As far as W is concerned, one thing he surely didn’t win was a referendum. He wasn’t exactly elected by the will of the people, and therefore just about everything he does is a minority decision.
Please try to keep this thread factual. A debate about the currencies, joining the EU, sovereignty, etc. would be a very good thing, but every thing in it’s place, no?
