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From Ianreadgood
Prague, 15 June 2001 (RFE/RL) -- The German central bank (the Bundesbank) estimates that more than one out of every three German marks moves outside of Germany -- signifying billions of marks. The banks says nearly all them are in Eastern Europe and the place of the former Soviet Union.
Because of the mark's security, and Germany's role as a place of work for Eastern European workers who deliver their money home, the level has developed right into a de facto second currency in the countries to the south and east of Germany's borders.
Kosovo and montenegro have also used the mark as legal tender. Their currencies have been pegged by other countries to the mark through currency boards. Bosnia uses a model of change called the "convertible mark," which positions on a basis with the German mark.
However the mark -- combined with other currencies of the European Union's 12-nation euro-zone -- is all about to disappear.
On 1 January 2002, more than 250 million people in Western Europe will begin trading their national currencies for the euro. Older values and pounds can circulate together until the end of February. After that, the national currencies will not be utilized.
That does not mean the currencies is going to be ineffective. Central banks will continue to exchange them for euros for several years ahead. However for all intents and purposes, Western Europe's national values -- like the mark -- may disappear.
Hans-Werner Sinn of Germany's Ifo financial research institute has looked at all aspects of the coming changeover. He states Eastern Europeans, like their counterparts in Western Europe, will ultimately need to trade their marks for pounds.
"Clearly, these Deutschemarks [German marks] will no longer be of use in the long run. So people will have to provide the Deutschemarks in for their respective banks and exchange them in to dollars. That may need certainly to occur in the spring of next year [by the end of the February deadline]."
Antti Heinonen, the manager of banknotes at the European Central Bank, or ECB -- the company that is coordinating the switchover to euros -- says that the change shouldn't cause many dilemmas for some Eastern Europeans.
Nevertheless the currency's first challenge -- in Eastern Europe at the least -- will be to change the mark in people's minds and mattresses. Prague, 15 June 2001 (RFE/RL) -- The German central bank (the Bundesbank) estimates that multiple out of every three German marks moves outside of Germany -- signifying huge amounts of marks. The banks says nearly all them come in Eastern Europe and the property of the former Soviet Union.
Because of the mark's security, and Germany's role as a spot of employment for Eastern European workers who send their money home, the mark has developed into a de facto second currency in the places to the south and east of Germany's borders.
Kosovo and montenegro have even adopted the level as legal tender. Their currencies have been pegged by other countries to the mark through currency boards. Bosnia uses a unit of exchange called the "convertible mark," which deals on a basis with the German mark.
Nevertheless the mark -- combined with other currencies of the European Union's 12-nation euro-zone -- is approximately to disappear.
On 1 January 2002, over 250 million people in Western Europe will begin trading their national currencies for the pound. Older currencies and euros will circulate together before the end of February. After that, the national currencies will not be properly used.
That does not mean the values will undoubtedly be ineffective. Central banks will continue steadily to change them for euros for several years to come. However for all intents and purposes, Western Europe's national values -- like the mark -- may cease to exist.
Hans-Werner Sinn of Germany's Ifo financial research institute has looked at all areas of the coming conversion. He states Eastern Europeans, like their counterparts in Western Europe, may ultimately need certainly to trade their marks for pounds.
"Clearly, these Deutschemarks [German marks] will no longer be of use in the future. Therefore people will need to provide the Deutschemarks in to their respective banks and exchange them into euros. Which will have to happen in the spring of next year [by the end of the February deadline]."
Antti Heinonen, the manager of banknotes at the European Central Bank, or ECB -- the company that is matching the switchover to euros -- claims that the change shouldn't cause many problems for most Eastern Europeans.
Nevertheless the currency's first challenge -- in Eastern Europe at the very least -- is to change the mark in people's minds and mattresses.
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