POEA Advisory on Euro Currency Introduction

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POEA MEMORANDUM CIRCULAR NO. 02: POEA Advisory on Euro Currency Introduction

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Title Supreme Court: POEA Advisory on Euro Currency Introduction

Law: Poea Memorandum Circular No. 02

Decision Date: Jan 27, 1999

The introduction of the Euro as a single currency for 11 Euro-zone countries will streamline transactions, eliminate bank exchange commissions, and allow for optional dual pricing in national currencies and euros, effective January 1, 1999.

administrative law

currency regulation

economic policy

A

Implementation of the Euro Currency

Inter-bank transactions, state debts, stock market prices, and bonds will be traded and paid in euros immediately starting January 1, 1999.
Cash transactions continued in francs or other national currencies until January 1, 2002.
Starting January 1, 2002, euro bills and coins became the sole legal tender.

Use of the Euro During Transition Period

Use of the euro by individuals and enterprises is not mandatory during the transition period.
Prices or charges may be expressed in francs or other national currencies.
Expression in both national currencies and euros is optional during this period.

Contracts and Pricing Adjustments

No contracts, including insurance, rental, employment, or salary agreements, may be modified as a result of the adoption of the euro.
From January 1, 1999, total bills may be expressed in both francs and euros.

Payment Methods and Currency Requirements

Payments by credit card or check can be made in francs, national currencies, or euros, provided the payee accepts.
To pay in euros by check, the payer must possess a euro checkbook.

Exchange Rates and Monetary Policy

The euro's value against other Euro-zone currencies was fixed on January 1, 1999.
Against non-Euro foreign currencies like the US dollar and yen, the euro's value fluctuates akin to the previous currency systems (mark or franc).
Exchange rate policy is determined by the Finance Ministers of the 11 Euro-zone countries in consultation with the European Central Bank.
The European Central Bank is responsible for implementing the exchange rate policy.

Impact and Benefits of the Euro

The euro simplifies transactions within the Euro-zone by removing bank exchange commissions.
Prices expressed in both national currencies and euros facilitate easier price comparison.
As of January 27, 1999, 1 US dollar was equivalent to 1.17 euros.

Administrative Reference

The circular was adopted on January 27, 1999.
Issued by Angeles T. Wong-Garcia, Deputy Administrator and Officer-in-Charge of the POEA.

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