Eleven European countries peg their currencies to the Euro on January 1, 1999 as a step in the formation of the European Monetary Union. The first day of trading will be January 4.

The eleven members are Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain.

The Euro will be introduced and phased in over a six month period. The legacy currencies will be eliminated by July 1, 2002. Until then the Euro will only exist electronically. After that hard currency will be available.

Fixed exchange rates will be set at the end of business on December 31, 1998.

The rate will be used for all conversions until the 11 currencies are eliminated.

On January 1 the 11 currencies will be quoted as denominations of the Euro.

The European Central Bank in Frankfurt comes into existence. The Ecu ceases to exist.

There will be no prohibition against using the 11 currencies and no compulsion to use the Euro until 2002. Contracts in the 11 currencies need not be converted to Euro provided they mature before January 1, 2002. Contracts maturing after that date must be converted at fixed rates during the transition period.

The Euro is divided into 100 cents and will be settled to two decimal places.

Euro trading will only have holidays on Christmas and New Year's Day.

From now to January 1, 1999 the bank advises "business as usual''. Hedge all currency exposures as normal and develop a plan to identify and review existing contracts, agree on changes, and develop and follow a conversion plan.

To do transactions in the Euro it will be necessary to open a Euro account at a bank.

From January 1, 1999 to January 1, 2002 the bank advises the continuation of contracts and settlements denominated in the 11 currencies; parallel Euro contracts and settlements; dual convertibility at settlement.