2014-09-22
V. Vasiliauskas: with 100 days remaining until the euro adoption, the Bank of Lithuania’s preparatory works are carried out exactly according to schedule
As the country is preparing to adopt the euro, the tasks for the Bank of Lithuania in this process are carried out exactly according to the schedule of works. The major tasks of euro cash acquisition, preparation for litas exchange, adjustment of payment systems have been accomplished, other actions — accurately planned and implemented.
“One hundred days is a symbolic boundary before the great ‘examination’, which is perfect for properly assessing what we have accomplished and, especially, what still needs to be done”, says Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania. According to him, in order for the currency exchange to be implemented smoothly, all institutions involved in this process must use the time remaining until the euro adoption to work together single-mindedly and as closely as possible.
According to V. Vasiliauskas, at the Bank of Lithuania the monitoring of the preparation process is conducted on a constant basis, therefore the evaluation of the “centenary” did not present any surprises — all preparations are taking place exactly as was planned.
Over the recent months essential progress was made in implementing one of the major tasks — acquisition of cash. From the Lithuanian Mint 97 million pieces, or almost half the amount projected to be minted this year, have already been brought to the Bank of Lithuania’s vault. Having signed an agreement with the Central Bank of Germany (Bundesbank) on the borrowing of euro banknotes, intensive preparations for the beginning of transportation of banknotes are under way as well. The total amount planned — 132 million pieces — is projected to be brought by December. In the upcoming months the frontloading of euro coins and, somewhat later, of banknotes to commercial banks will start, while these, after collecting data on the needs of their customers, will begin euro sub-frontloading.
The Board of the Bank of Lithuania has also approved the lists of banks and credit unions that will exchange cash litas into euro free of charge. Together with branches of Lietuvos paštas (Lithuania Post) and the Bank of Lithuania’s cash offices, the total number of such locations for free exchange will amount to 690.Their list is available on the Bank of Lithuania website, where an interactive map of exchange locations can also be found.
Having signed with banks a Memorandum of Understanding on Good Practices during the Adoption of the Euro, how to ensure that litas exchange into euro goes as smoothly as possible has been planned — longer working hours are projected during the intense period, with additional human resources to be allocated for that purpose. In order to reduce the requirement of cash for change, the Bank of Lithuania has agreed with commercial banks to restrict at the end of 2014 the appearance of high denomination litas banknotes in circulation, while during the frontloading and in early 2015 — to dispense first to customers at bank branches and from ATMs euro banknotes of lower denominations (e.g., 5, 10, 20, 50).
Until the adoption of the euro, the Bank of Lithuania has to prepare and adjust payment systems on which both large and smaller retail transfers of bank customers rely. The key systems have already been adjusted by the Bank of Lithuania’s specialists and their testing is beginning now. Having adjusted the local retail payment system to carry out operations in euro, as of 1 January 2015 at the same time it will become more convenient for the customer, as the funds transferred, due to clearing being carried out on an hourly basis, will reach the addressee more quickly. In addition, every day the systems’ working hours will be longer.
The Bank of Lithuania has also been given the role of informing the public about the new currency and its security features. One of the key segments in this process is cashiers and other persons working with cash. By now the Bank of Lithuania has already introduced 1,015 distribution businesses and representatives of Lietuvos paštas to the euro cash security features, and they will in turn relay their knowledge of the security features to their colleagues.
As soon as the Council of the European Union made its decision on the adoption of the euro in Lithuania, an unprecedented social campaign has been implemented jointly with the largest mobile operators — nearly 3 million subscribers received an SMS with the irrevocable exchange rate of the litas against the euro. The customers were also warned to resist the deception of being urged to exchange litas not at the targeted locations. Information is provided through different means: by now the Bank of Lithuania has already distributed 1.3 million different publications about the key aspects of the euro adoption.
A substantial part of information activities is carried out in cooperation with the European Central Bank. In November it is planned to send a special publication on euro cash security features to every home. Together with this publication, special hologram cards with spread sheets for the calculation of the litas and euro exchange rate will reach residents as well. Separate educational tools should be made available for people with disabilities. In December–January an active information campaign through the media is also projected, while from the end of October to the beginning of January people will have the opportunity to visit a free-of-charge interactive Euro Exhibition at the Palace of the Grand Dukes of Lithuania in Vilnius.
In pursuit of greater awareness of the public on the future currency, prior to the adoption of the euro, in December, sets of Lithuanian euro coins, worth LTL 11.59, will be available at banks and branches of Lietuvos paštas and the public will be able to acquire them. Their production has already begun; their total number will be 900 thousand pieces.