does not lend credence to the assertion that this exchange rate arrangement leads to sluggish growth. ( b ) impediments to trade diversification there are, however, other aspects of this potential conflict between stability and development. in this regard, i would like to draw on experiences from the irish currency arrangement, which has strong similarities with our cma arrangement. the irish pound was introduced in 1927 at a one - for - one parity with sterling and the arrangement lasted until ireland decided to participate in the european monetary arrangement in 1979. full convertibility with sterling was ensured and all notes issued were to be backed 100 % by a reserve consisting of gold and sterling balances. one consequence of the sterling link was that trade to a large extent was directed towards the sterling area. it has been argued that for this reason ireland did not benefit from the “ post - war dynamism ” in europe following the second world war. having the alternative to avoid the costs of currency risk and foreign exchange transaction, the irish exporting enterprises were reluctant to establishing trading relationships with other markets in continental europe and elsewhere. because of the one - for - one link, trade with the sterling area involved no greater financial complexity than internal trade. the analogue to the namibian situation is striking. as mentioned, namibia is still importing close to 90 % from the cma countries. the arrangement therefore requires vigilance and determination to diversify our pattern of trade and commerce. ( c ) capacity building a similar argument can be made with regard to the financial system. the limited use of monetary policy instruments under the currency board arrangement and the use by the local banks of the london money market for their liquidity needs, were not conducive to the development of risk management and trading skills in ireland. the acquisition of such skills was largely delayed until the emergence of a domestic money market in the early - 1970s and of a foreign exchange market even later. again, these are relevant points when analyzing the namibian situation. one point that is often overlooked by those arguing for an adoption of an independent monetary policy, is the issue of preparedness. the development of an active interbank market and secondary markets as well as local capacity in liquidity forecasting and management is a pre - requisite for the successful implementation of monetary and exchange rate policy. this process requires active promotion and assistance by the central bank. while some progress has been made in this direction by the consolidation of government bonds, the fine - tuning

jose manuel gonzalez - paramo : on the occasion of the inauguration of the euro exhibition in barcelona speech by mr jose manuel gonzalez - paramo, member of the executive board of the european central bank, on the occasion of the inauguration of the euro exhibition, barcelona, 2 february 2009. * * * dear jose, ladies and gentlemen, it is a pleasure for me to be here in these wonderful premises of banco de espana in barcelona to celebrate with you the occasion of the 10th anniversary of stage three of the economic and monetary union ( emu ) and of the adoption of the euro. we are also here to inaugurate “ the euro exhibition ”, presenting the euro banknotes and coins through a range of innovative features, which we hope will be appreciated by the public in barcelona. 1. first 10 years of the euro on 1 january 1999 the third stage of emu began with the irrevocable fixing of the exchange rates of the currencies of the 11 member states initially forming the euro area. monetary authority for the new currency was transferred to the governing council of the european central bank. the euro became the currency of over 300 million citizens of europe. the number of countries participating in the emu grew over the years. today, euro banknotes and coins are legal tender in 16 of the 27 member states of the european union, and used daily by almost 330 million citizens in the euro area. slovakia has recently become the 16th member of the euro area. following a two - week dual circulation period during which payments could be made using either euro or slovak koruna, the euro became the sole legal tender in slovakia on 17 january 2009 and the changeover was very smooth. today, the single currency is used in an area that stretches from cyprus to ireland and from portugal to finland. as you know, the euro cash did not enter into circulation until 1 january 2002, when it replaced the banknotes and coins of the national currencies like, in the case of spain, the peseta. to support the cash changeover, which was one of the largest logistical operations undertaken in europe, extensive information campaigns were successfully run to acquaint citizens with the visual appearance of the euro banknotes and coins. the euro is widely recognised as an international currency of major significance. some 12 billion banknotes circulate in europe and beyond, representing a face value of more than eur 700 billion. the number of euro banknotes in circulation continued to grow since the initial cash