News Release
Preparations for the Euro
16 December 1996
The Bank publishes today the third in its quarterly series of reports on the practical implications for the UK of the introduction of the Euro .
The purpose of these reports is to bring together, at least in summary form, information about all the preparatory work that is currently going forward, and to highlight areas where more work may be needed.
The Bank sees its role as helping to prepare the financial and business community for the Euro, whether the UK is in or out, by providing information, identifying areas for co-ordination and, where necessary, stimulating work. Our main focus has been the wholesale financial sector, as this sector will be affected whether or not the UK is in, and will need to operate in Euro from the very start of the transition. But as the report describes, we have also been developing our contacts with the business sector, retailers and consumer groups.
The main developments since the last report in September have been:
- In the payments area, it has been decided how CHAPS will accommodate euro in the domestic RTGS system, in both the in and out scenarios.
- The Bank has continued to play a full part in the Interlinking project which will connect national RTGS systems to Target.
- Some progress has been made on TARGET , though the question of access by "outs" to intraday liquidity from the Euro area remains unresolved. Such limits, if imposed, could make TARGET unattractive to banks from non-Euro area countries, and the Bank will be examining alternative ways to ensure that UK banks can make payments in euro securely and efficiently.
- Initial investigative work has been undertaken on all retail payment systems, which will be significantly affected only if the UK is "in".
- Tentative analysis of the implications for securities settlement systems has been undertaken.
- The Working Group on the Gilts Market after EMU has reported, and its report is published in today's paper.
- The Bank has continued its discussions with retailers and others interested in the retail sector , including the Consumers' Association.
- The first in a series of workshops for business has been organised by the CBI and the British Chambers of Commerce.
- The European Commission has adopted two draft Regulations on legal issues .
- The Euro bank-note designs have been published, enabling work on the detailed design of the new currency to start
Finally, the report describes the continuing work of the European Monetary Institute, the forerunner body of the European Central Bank. Next month the EMI intends to publish a major paper outlining the "regulatory, organisational and logistical" framework for the future European System of Central Banks, and much of the ground is covered in today's report from the Bank.
The next Report will be published in April, and the Bank will additionally be holding, in January, a symposium to bring together many of the groups involved in EMU-preparation work.
Note to Editors
Individual or bulk copies of this Report are available from:
Public Information and Enquiries Group, Bank of England, London EC2R 8AH,
Tel: +44 (0)20 7601 4878
Fax +44 (0)20 7601 5460
E-mail: enquiries@bankofengland.co.uk
Key Resources
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Practical Implications for the UK of the Introduction
of the Euro Third Report, 16 December 1996 Read |
