The Bank of Bermuda and the Bank of NT Butterfield are gearing up for the launch of the Euro in the New Year.

The Euro is set to become the European Union's (EU) common currency from next month. Twelve EU nations are switching over to the Euro and taking their national currencies out of circulation. The United Kingdom, although an EU nation, is sticking to sterling, having chosen not to switch over to the Euro.

A Bank of Bermuda spokesperson said: "People in Bermuda can draw Euro drafts and send Euro wires at the Bank already, and people travelling abroad can use their credit cards for Euro purchases.

But, the Bank does not foresee holding large amounts of hard Euro currency: "Like the old currencies that preceded them, however, we will not be stocking Euros for travellers. We have researched the demand for these currencies and there is currently not enough demand for us to hold large amounts of Euros in stock, although we will continue to monitor this closely in case there is any change.

"For returning travellers, we will be accepting Euros in exchange for the currencies we do hold.

"When Euro Travellers cheques are available we will look into ordering these should there be demand, but as yet there are none being produced."

Meanwhile, Bank of Butterfields chief financial officer Richard Ferrett said: "We have been buying and selling Euro's as a currency since its inception on January 1, 1999, offering both deposit accounts with the Bank's Treasury Department and a Euro class of the (BAM) Money Market Fund since that time.

"We have also been issuing Euro dollar drafts and traveller's cheques and making payments in the currency on behalf of clients. The Bank will have stocks of Euro notes available for sale to the public commencing Wednesday, January 2, 2002.

As currencies from the 12 nations will be going out of circulation, the Bank of Butterfield has said it will be accepting, for purchase, bank notes from the 12 participating nations up to February 9, 2002.

"We would certainly recommend that members of the public check whether they have any notes of the 12 Euro zone countries at home and if so bring them to the Bank for exchange, either for dollars or, if they wish, Euros," Mr. Ferrett said.