Bilateral conversion rates between currencies participating in EMU on 1 January 1999 were pre-announced by the European Council of May 1998 but the rates of national currencies against the euro were not definitely fixed until 31 December 1998. Creation of the European Central Bank, headquartered in Frankfurt. Financial and banking sectors finalise changeover preparations. Businesses accelerate preparation efforts. The euro is established as the currency of EMU since 1 January 1999.
National currencies continue to exist as expressions of the euro.
Monetary, capital, foreign exchange and interbank markets converted to euros. Payment instruments such as cheques, traveller's cheques and payment cards work in euros but those denominated in national currency unit continue to circulate. A number of large companies start operating in euros and encourage suppliers to transact in euros. Banks communicate increasingly on the euro. Most consumers continue to deal in national currencies, but progressively start using the euro.