Message from the MD
With the launch of euro notes and coin moving ever closer, the focus of the media is very much on the potential problems that the transition might throw up. Yet, in many ways, corporate treasurers have already made the transition.
The euro was introduced as a currency at the beginning of 1999. A number of companies, then and since, have rationalised their bank account structures as the banks have worked hard to enable euro balances to be pooled into one place. Many of these companies started billing in euros as soon as they could, and the largest ones demanded that they be billed in euros as well. At the corporate treasury level, the euro very definitely exists and is very definitely in use. This would suggest that corporate treasuries have nothing to fear from the introduction of the euro notes and coin in just a few weeks time.
Unfortunately, it is not that simple. There are still some significant hurdles to overcome. Firstly we reported in last month’s issue that many small and medium-sized enterprises have failed to prepare adequately for the introduction of notes and coin. Do you know if all your trading partners will have the means to pay and be paid in euros by 1st January.
Almost all eurozone businesses will have to handle the new notes and coin. Companies need to make sure that all their employees who will be handling cash are aware of these security features that were released by the European Central Bank, particularly for the highest denomination notes. Counterfeiting is likely to be a problem as the fraudsters exploit the inexperienced.
Have you done everything you need to do to make sure your company is ready?