FED: RBA sheds some light on impact of the Euro

AAP General News (Australia)
12-15-1998
FED: RBA sheds some light on impact of the Euro

CANBERRA, Dec 15 AAP - The Reserve Bank of Australia today shed some light on the impact of
the introduction of the Euro next year, saying there should be no material change in the value
of the Australian dollar.

The European currency is scheduled for introduction from January 1, 1999.

"I dont myself see why there should be a material change in the variability of the
Australian dollar as a result of the Euro," Reserve Bank Governor Ian Macfarlane said today.

"Youre right to say that we move a couple of rungs up the ladder of most-traded currencies
because a couple of individual currencies drop out.

"I dont necessarily see that as being big enough to make a huge difference."

Speaking before a parliamentary committee, Mr Macfarlane said he did not know a lot about
the implications of the introduction of the new currency.

"(But) for us its quite simple really - approximately one third of our reserves have been
in Deutschemark ... and they will be held in Euro," he said.

AAP ear/mfh/jg/jnb

KEYWORD: ECONOMY EURO

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