Border banks have euro well in hand

A UBS worker gets ready for the euro Keystone

Much of the effort in preparing for the coming of the euro along Swiss borders has fallen to local banks.

The Swiss city of Basel borders both Germany and France – so preparing for the euro’s arrival there has been of crucial importance.

The euro, which comes to life in the form of notes and coins at the start of the year, has been a tradable reality since 1998 with many local Basel companies already sending invoices to “euroland” clients for payment in euros.

Generally, border communities across Switzerland are among those most affected by the introduction of the new currency as they have close economic, business and cultural ties with communities across the border.

At Basel’s largest bank, UBS, a lot of effort has gone into preparing staff and the 50,000 account holders for the advent of the euro in France and Germany.

Ulrich Halbeisen, director of UBS Basel-City, told swissinfo of the main implications of the new currencies.

“In this region about 15 per cent of our workers are German and French so the salary that is paid to them will be transferred back to euros,” explained Halbeisen. “Furthermore, Swiss people here in Basel are going across to France and Germany to buy everyday shopping items.”

Account transfers

The process of transferring accounts held in the legacy currencies, such as French francs and German marks, into euros, is all but completed, according to Halbeisen.

“What we’ve done in the past few months is transfer accounts that were held in the old currencies into euro accounts, and this was all done by the end of September,” said Halbeisen.

“There are still a few accounts remaining until the end of December in the old currencies but then they will also be transferred into the euro – so the main work has already been done.”

Opening a euro account has also become an increasingly attractive option. With a variety of euro-denominated accounts on offer from the major Swiss banks Swiss travellers can avoid currency exchange fees between the 12 euroland member states.

Deadlines

Halbeisen believes the euro’s introduction won’t have a great impact on the lives of people in Basel, with most citizens of this border region well prepared for the new currency’s introduction.

Besides transferring bank legacy currency accounts into euro denominated accounts, there remains the issue of what to do with the piles of French francs and German marks stuffed in border dwellers’ wallets.

It’s important to remember that there are deadlines to be met for currency transfers.

“For notes the deadline for exchanging for free is February, after that the last date for exchanging old notes for euros is at the end of June – but in this period we will charge for that,” said Halbeisen.

Similar deadlines are in placed across the border in France and Germany.

Education

The local banks have taken their role as euro educators very seriously. Information on the euro was first sent out to clients of UBS in Basel back in 1998.

“We first sent out our booklet ‘Everything You Need To Know About The Euro’ in 1998 and we’ve kept on updating clients since then,” added Halbeisen. “We’ve also sent out special information for investors and business people telling them exactly what the euro means for them in particular.”

Walter Hausler is head of private client business at UBS Basel-City, he told swissinfo that the UBS website has plenty of information for customers.

Staff training

He also stressed that staff have been given an immense amount of information on the new notes and coins. But he also noted that there had been concerns about forgeries of the legacy currencies slipping into the system ahead of the euro’s launch.

“We gave strict orders to staff to check the in-currencies for forgeries,” explained Hausler. “So with ultra violet lights and also our staff’s experience we have been able to see if notes are forgeries or not.”

As for the euro notes and coins, staff won’t be able to see the new currency in the flesh until January 3rd when the banks reopen in the new year. Even so staff have seen copies of the notes and coins so Hausler is confident.

“Well I think we are very comfortable we have no problems at all,” said Hausler.

Euro business

Despite the Swiss franc remaining Switzerland’s legal tender about half of the business done in Basel and other border communities will now be conducted in euros.

With this in mind shops and businesses in Basel are certainly ready to accept the new currency in the same way as they previously accepted French francs and German marks.

“The euro will account for about half of our business,” noted Halbeisen. “But dealing with foreign currencies is a daily business for us. Whats changing for us is that we’re getting one new foreign currency and 12 are disappearing and that makes things even easier for us.”

Halbeisen also pointed out that ATM machines will also be changing over to hand out the new currency, which involves some minor modifications to software and the boxes that hold the euro notes.

“The change of the cash machines will start in the border region with machines ready for the 3rd of January,” explained Halbeisen. “By the 15th of January everywhere in Switzerland will have machines dealing with euros.”

The euro’s introduction will certainly mean that border communities across Switzerland have something new to get used to.

But as the bankers are keen to remind us these communities have been used to dealing with foreign denominations in their daily business for a long time and they are ready and set to take on the euro challenge.

by Tom O’Brien