euro. all accounts with the bank, whether held by credit institutions, the government or international institutions, will be in euro. existing notes and coin will become constituent parts of the euro. the banks generally must be ready to make any banking service required in ireland available in euro. from january next, they will process lodgements and payments in irish pounds or euro, as required. it would be reasonable to anticipate that irish business in general will move to the euro faster than the official timetable requires. the national changeover plan, published some weeks ago, draws attention to arrangements for the period of transition pending the introduction of euro banknotes and coin. during this period banknotes of the member states participating in emu must be exchanged at par value. from january the central bank will provide an inward exchange service free of charge. exchange rate / interest rate i am under the usual constraints in regard to comment on current exchange rates and interest rates for the irish pound. these issues are highly sensitive. determination of exchange rate policy is the prerogative of the minister for finance. it has been decided that the method for arriving at the conversion rates for the different currencies, including the irish pound, will be settled and announced at the time of decision on emu membership. this decision, it now appears, will be taken on 3rd may. nothing further has been decided at this stage in relation to fixing of exchange rates. the intention to pre - announce bilateral rates in may is driven by the general concern throughout europe to avoid market speculation as we move closer to the january 1999 deadline. while national authorities will continue to be responsible for the exchange rate of their respective currencies up to this deadline, the may agreement should have a decisive influence and should diminish the possibility of considerable fluctuations. there has been substantial convergence of interest rates in europe in recent months. irish interest rates, at the short end of the scale, though low by historic standards, remain substantially above levels across much of europe. there has been a good reason for this. it reflects domestic conditions here as the economy has continued to be exceptionally buoyant and the threat of overheating remains. if we were not on the doorstep of emu, our interest rates would now be higher. wholesale interest rates must converge, among the countries participating in emu, by january 1999. this points to the expectation of reductions in irish rates, even if european rates were to move upwards further in the meantime. i cannot quantify reductions precisely

economic development. distinguished guests, with the risks to economic growth projected to remain elevated, allow me, to take this opportunity, to urge barclays bank zambia and absa group limited to explore ways in which the bank can assist in addressing some of the challenges facing the country, such as, load shedding, as this has potential to further negatively impact the country ’ s economic growth. it is our expectation that barclays bank zambia will come up with products and services that will contribute to the enhancement of alternative energy sources to mitigate the threat on economic growth and indeed financial stability arising from load shedding. ladies and gentlemen, it is also our expectation that the bank will continue to support the sme sector in zambia, as the sme sector is key to sustainable economic growth and development of the country. you will agree with me that smes have the potential to create many productive jobs and contribute significantly to our economy, if well supported. it is our expectation that absa group limited, through barclays zambia, will continue with its efforts and strategies that promote financial system stability, support monetary policy, enhance financial inclusion and gender mainstreaming for sustainable development in line with the bank of zambia ’ s strategic objectives. today, as we commission this site, it is my hope that the facility will be of highest standards and that the new premises will provide an environment for the provision of innovative financial solutions to the public as an endorsement of the absa group brand promise “ bringing possibilities to life. ” master of ceremonies, distinguished guests, ladies and gentlemen, with these remarks, please join me in applauding the board, management, and staff of barclays bank zambia, and absa group limited, for this initiative that will introduce convenience and world class banking services and facilities to its clientele. the timing of this project is also a good indication that the absa group is opportunity focused rather than challenges. we hope this will rub on to the other players in our economy as well. thank you and god bless.