2014-12-01
One month left until euro adoption, future currency - for population and businesses
On December 1st the Bank of Lithuania, at its cash offices in Vilnius and Kaunas; commercial banks — in different locations of the country start selling sets of Lithuanian euro coins, designated for the public to get acquainted with the future new legal tender. Moreover, supply of coins and banknotes to businesses starts today.
“The first Lithuanian euros will already reach the population today. I hope that many will acquire the sets being issued for acquaintance purposes, moreover that after the euro adoption on 1 January 2015 we will be able to spend them later as normal legal tender. The starter kits, from January 1st, can be useful for small entrepreneurs in particular, in giving change,” says Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania.
Each set designated for the public consists of 23 Lithuanian euro coins marked with the Vytis: 1, 2, 10, 20 and 50 euro cents, three of each; 1 and 2 euro coins as well as two 5 euro cent coins. The EUR 11.59 sets of euro coins are being sold from today at the Bank of Lithuania and commercial banks, while from December 4th — at 330 branches of Lietuvos paštas, for LTL 40 (EUR 11.58), until the end of this year, before Lithuania changes over to the new currency on 1 January 2015. The euro coin starter kits are being sold only in the territory of the Republic of Lithuania and only to natural persons, no more than 5 kits at a time for one individual.
The process of euro frontloading for banks is gaining momentum as well. According to the data as of November 26, the Bank of Lithuania has already issued to commercial banks more than 100 million coins (about 60% of the total amount projected for this year) and 4.2 million euro banknotes (13.2%).
According to last week's data, businesses have signed with commercial banks about 7,400 agreements on euro frontloading, which begins today — on December 1st. Depending on the bank, agreements have been concluded by up to 70 per cent of entrepreneurs for whom euro frontloading can be of relevance.
The Chairman of the Board of the Bank of Lithuania urges enterprises which have not yet ordered euro cash in advance to immediately apply to the commercial banks servicing them, and if they have already ordered them at commercial banks — to withdraw them.
“Intensive euro distribution work is still ahead in December, thus I invite commercial banks, CIT companies and entrepreneurs who have ordered euro to do it responsibly,” says V. Vasiliauskas.
The decreasing amount of cash in circulation is facilitating preparations for the euro adoption. The amount of cash in circulation in early 2014 was LTL 11.9 billion, decreasing by 33 per cent — to LTL 8 billion until early December.
“Large denomination litas banknotes have been decreasing most. We project that, over December, cash litas in circulation may decline substantially even more, which is very good news. With the decline in cash litas, the need for exchange operations will decrease at the beginning of the next year as well,” says V.Vasiliauskas, Chairman of the Board of the Bank of Lithuania.
