Change to euro change and notes!

Old Aug 15th, 2001, 05:27 AM
  #1  
aj
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Change to euro change and notes!

Will the change to the euro affect our trips
to Europe this winter and spring? All of the news articles I have read seem to imply there will be some chaos before things run smoothly. What do you think?
 
Old Aug 15th, 2001, 06:06 AM
  #2  
wes fowler
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You'll have no difficulty with concerns regarding the Euro this winter since the currency will not be in general circulation until after January 1, 2001. Early next year should be interesting. An article in today's New York Times, 8/15/01 refers to polls taken that indicate how unaware Europeans are regarding the Euro and its value: unaware that it will be a common currency in 12 countries; unaware of its buying power compared to present national currencies despite the fact that items have been priced in both currencies for a considerable period of time; 80% of those polled could not quote a price in Euros. There's concern regarding some of the higher denomination bills that far exceed in value the largest denominations presently in existence, the 500 Euro note is 17 times the value of Greece's highest denomination drachma note. There also appears to be significant concern regarding the ability to have Euros in place in banks by the conversion date and equal concern about the ability of cashiers to cope with receiving present national currency and providing change in Euros, coupled with the strong possibility of merchants "rounding up" prices to the nearest Euro denomination to simplify changemaking. Should be an interesting period!
 
Old Aug 15th, 2001, 06:07 AM
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wes fowler
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Got a typo there; should be - not in general circulation until January 1, 2002.
 
Old Aug 15th, 2001, 07:11 AM
  #4  
Ed
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Euro shouldn't have any effect on your travel this (2001) fall or winter, EXCEPT for two considerations:
1) Scams
These have already begun. Don't accept any offers to trade your dollars, francs or whatever for euros at a steep discount ... there are already con men and women out there offering euros for below-par rates ... counterfeit of course. Mainly approaching natives, but could hit tourists as well.
Another trick? Stores have been reported to write the price of the goods on credit cards slips in terms of the local currency (francs, marks, etc.) but write the symbol for the euro to the left of the amount. This jacks up the price charged by a factor of only two in Germany, more than 6X in France, and 2500 times in Italy! Keep your eye on that credit card charge.
2)Much after February 28 next year, it may be be a bit difficult for travelers to exchange legacy currency for euros. On any travels between now and the first of the year, get rid of your legacy bills and coins before you return home, unless you're sure you'll be back before February 28.

Things will undoubtedly be a bit hectic for the natives after January 1. I, for one, would find it difficult to think of the value of things in terms of a new currency if my lifelong money, dollars in my case, were replaced with something else.

For travelers, things shouldn't be too difficult. Most goods and services for travelers have been priced in both euros and legacy currency for some time, so not much will change on Jan. 1, except that you'll be able to get your hands on physical euros, rather than merely seeing them on your credit card statement.

If you want to get up-to-date on the euro, read The Euro - A Primer for Travelers to Europe at
www.twenj.com/euro.htm

By the way, the euro is now above 90 US cents for the first time in several months.
 
Old Aug 15th, 2001, 07:27 AM
  #5  
Mariarosa
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wes and ed - thanks for the explanation of possible foul-ups!

I am planning a trip to Italy from Feb 24 - March 3, 2002. One of the problems that I am encountering is that some hotels do not have the prices posted yet. Is this because they are trying to figure out how many euros to charge? The second problem that I have is budgeting. For those hotels that have posted their prices for next year (in Euros) I have been calculating prices at .9 Euros to the dollar, but there is the possibility that the Euro will go back to 1:1 to the dollar (as it was originally intended).

So my questions are (bear with me, my finance knowledge is limited, darn that Liberal Arts degree!):
1) Do you think I can trust that the Euro will stay more or less at .9 to the dollar?
2) Should I assume that the ONLY currency i will have to deal with in Italy (end Feb) is the Euro, can I refuse to accept Liras?
3) Can I assume that prices for hotels, etc., will be pretty much the same as this year (except for the small raise for inflation)?

Thanks!
 
Old Aug 15th, 2001, 07:29 AM
  #6  
Mariarosa
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ooops! I meant to write that the dates of my trip are Feb 17 to March 3, 2002.
 
Old Aug 15th, 2001, 07:42 AM
  #7  
Ed
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There's no question as to how many euros to charge ... if they know how many lire they'd want to charge. The lira to euro exchange rate has been fixed, absolutely, since January 1, 1999.

Really, your first and third questions have no realtionship to the euro's introduction.

Will the euro stay around .9 to the dollar? If I knew the answer to that, for euros, pounds or zlotys, I'd be making arrangements for my zillion-dollar yacht parked in front of my Cannes beachfront mansion. My guess, repeat guess, is that there are no major swings in the offing. But I've been watching European currency to dollar exchange rates for 35 years, and they've done strange things. If there are no sudden wars, if someone is not assasinated, if Iraq doesn't capture a few oil fields, I'd guess the dollar exchange rate shouldn't change a great deal. But then, I can't really tell you why the euro has increased in value in the last several weeks.

If I understand the eurobureaucratese properly, which is unlikely, the lira and most other eurozone legacy currencies will be "legal tender" along with euros until February 28, meaning you'll have to accept it. The last date as legal tender is earlier in Germany, Netherlands, Ireland and France.

As to hotel prices? If I could forecast those, especially in Rome or Italy, I'd add that helicopter I wanted to the yacht. I have watched Rome hotel prices for the same 35 years. The only thing I've learned is that Roman hoteliers, for the most part, are among the most greedy in the world. They raise prices when business is up. They raise prices when business is down. I've never seen them lower prices.
 

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