Denomination and Conversion Rates
- The Euro is subdivided into 100 cents and settled to two decimal places.
- Conversion rates for legacy currencies to Euro, fixed on December 31, 1998, must be used from January 1, 1999, to June 30, 2002.
- Conversion rates remain unchanged for Euro conversion but may fluctuate against the US Dollar daily.
- Exchange rates quoted as EUR1 = xxxxxx units of legacy currency.
- Bangko Sentral publishes conversion rates in its Daily Foreign Exchange Bulletin.
Circulation and Legal Tender Status of Currencies
- Euro banknotes and coins circulated starting January 1, 2002.
- Legacy currencies continued as legal tender until replaced by Euro notes and coins.
- Dual circulation period from January 1 to June 30, 2002, during which legacy and Euro currencies coexisted.
- Governments of member states may shorten the dual circulation period – Germany, for example, ended it on April 30, 2002.
- Bangko Sentral issues guidelines on legacy currency withdrawal and surrender deadlines.
Account Management and Conversion Procedures
- Legacy currency accounts could be maintained alongside Euro accounts between January 1, 1999, and December 31, 2001.
- Conversion to Euro accounts is mandatory by December 31, 2001.
- Conversion involves closing legacy currency accounts and opening Euro accounts at fixed conversion rates.
- Conversion rates expressed in six significant digits, with no truncation or rounding except final rounding to nearest currency unit.
- Rounding rule: if halfway between two units, round up.
- Account holders advised to coordinate with their banks for conversion.
- Euro accounts allowed in any bank within the European Union with conversion at no cost and without service disruption.
- During transition, balances may show both Euro and legacy currency figures.
Differentiation Between Euro and ECU
- The Euro is a distinct currency, whereas the ECU was a basket of currencies.
- ECU basket included eight legacy currencies and three non-legacy currencies; notably, Austria and Finland's legacy currencies were excluded from the ECU.
Modifications to Accounting Systems
- Both public and private sectors including individuals must adjust accounting systems to reflect the introduction of the Euro.
Reporting Requirements for Euro-Denominated Transactions
- Bangko Sentral's Daily Foreign Exchange Bulletin incorporates fixed legacy-to-Euro conversion rates and daily US dollar and peso exchange rates starting January 4, 1998.
- These rates are used for conversion of legacy currency accounts to Euro and US dollar/peso equivalents.
- Bangko Sentral's reporting systems updated to include the Euro as a new currency from January 1, 1999.
- Legacy currencies removed from currency library effective July 1, 2002.
- Separate Circular Letter to cover Euro reporting guidelines.
- Entities with foreign loans in legacy currencies must notify Bangko Sentral upon conversion.
- Foreign liabilities continue to be reported in original currency per account and transaction.
- Country of creditor must still be reported despite consolidation into Euro accounts.