Euro reaching people's wallets

Europeans are using large denomination euro notes in stores

BRUSSELS, Belgium -- The euro has become the main currency for Europeans living in the eurozone after three-working days using the new currency, the EC has said.

The European Commission said 50 percent of all cash transactions in the 12-nation eurozone have been carried out in the single currency since its introduction on January 1.

The levels of penetration has varied throughout the zone, with the Netherlands and Greece using the notes and coins the most, and France, Italy and Spain the least.

The rate of penetration of the euro reached 80 percent of transactions in The Netherlands and Greece but only between 25 and 50 percent for France, Italy and Spain, helping to produce an overall average level of 55 percent.

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The level of euro penetration stood at between 50 and 65 percent in Austria, Finland, Ireland, Portugal, Luxembourg and in Europe's biggest economy, Germany.

The Commission said in a statement on Saturday: "In a mere four days, only three of which were working days, the euro has become the main currency used by the European public to make cash payments.

"The speed of the changeover reflects people's enthusiasm for the new currency."

The long queues initially feared at shops have so far largely been avoided, but banks have fared less well as people rushed to exchange smaller sums of their old national currency for euros.

The EC added: "Minor problems with the availability of small-denomination banknotes and certain coin denominations were reported in most member states, but this was not interfering with normal trading."

The Commission said people had showed a tendency to use large denomination notes of their old national currency in shops while exchanging smaller denomination notes in banks.

"This is helping to quicken the dissemination of the euro but is also causing shortages of small-denomination notes in shops for giving change," it said.

To counter such problems, some countries including Ireland, The Netherlands and Spain have organised special deliveries of the euro currency or have encouraged banks to open on Saturday.

The Commission urged people to change large-denomination old currency banknotes at banks rather than shops.

It added that people can still exchange cash savings at banks without charge for several more months.

The Commission, the European Union's executive arm, said nearly 99 percent of automated teller machines (ATMs) in the eurozone, or 201,000 machines, had been adapted to give out only euros by the end of business on Friday.

"Conversion operations are virtually complete," it said.

Of the 15 countries in the European Union, only Britain, Sweden and Denmark have not joined the single currency.