. obviously, the central bank cannot put precise figures on the quantities of irish currency that must be withdrawn. i can tell you that there are roughly 180 million banknotes and 2½ billion coins on issue. the expectation is that the greater proportion of banknotes outstanding will be returned. as regards coin, we would not expect more than 80 per cent in overall value and considerably less in lower denominations. the minister for finance has already indicated that the banks will not impose a handling charge on st euro cash provided to retailers prior to 1 january. also, there will be no charge on retailers for lodgement of irish banknotes and coin during the dual circulation period and for a short time th afterwards ( up to 15 february ). during this period the central bank will pay a lodgement fee to the banks in part compensation for the fee income that they will forgo. the cost is estimated at £5 - £6 million. the total cost to the central bank of the changeover is likely to be in the region of £70 million ; production materials will account for two thirds of the total outlay. i have outlined the changeover programme of the central bank. we are also involved through a publicity campaign run by the european system of central banks in promoting familiarity with the new currency. we work in close co - ordination with other agencies such as the euro changeover board of ireland and forfas and the office of the director of consumer affairs and i would like to acknowledge the contribution that these are making to preparations. there is understandable concern that the changeover may boost inflation as traders may take advantage of the situation and round up prices or seek compensation through price increases for changeover costs that they may incur. in ireland it is part of the folklore that decimalisation in the 1970s had inflationary consequences at the time. may i say, in relation to decimalisation, that an examination of the facts will demonstrate that it did not have any significant inflationary outcome. as regards the euro changeover the expectation is that any inflationary fallout should be small. this is the view of the european central bank which is monitoring developments on a euro area wide basis. it is considered that market competition and price transparency can soon reverse any inflationary effects of the changeover. at the same time there is need for vigilance as the opportunity for price increases is heightened in the months ahead. fees and charges administered by governments across the euro area will be price neutral or revised in favour of the consumer. here at

has made considerable progress in achieving the objectives as envisaged in its terms of reference. however, this is merely the beginning of a long journey which requires us to accelerate our efforts to make this network more effective. we may also need to take more initiatives and identify areas where we can further deepen our cooperation. also, the future role of the saarcfinance will become more challenging in the wake of ever - growing competition and growing economic and financial integration in the saarc region. in this context, the regional central banks would need to join hands with other saarc bodies and enhance coordination with them, especially with saarc chamber of commerce and industry, as it is engaged in promoting cross border trade and investment flows. we would also need to play an active role at igeg on financial issues. i am confident that our collective commitments, level of cooperation & information sharing, and efforts towards better shaping the future course of the saarcfinance would be instrumental in meeting the challenges confronting us in the fields of economy and finance. with this update, i thank you for giving me this opportunity and your continued support to the saarcfinance network. bis central bankers ’ speeches