The introduction by ECB of a single European currency called the Euro covers three distinct phases:
• Phase 1 – Announcements and creation of the ECB on June 1, 1998.
• Phase 2 – Jan. 1, 1999: Euro becomes the legal currency for participating countries; national currencies remain legal tender in circulation within each respective country; also known as the transition period due to coexistence of the Euro and national currencies.
• Phase 3 – Jan. 1, 2002: Euro banknotes and coins will be issued; national currencies to be withdrawn from circulation by EMU.
To facilitate the changeover of the existing national currencies of the 12 member states during the transition period, the Bangko Sentral ng Pilipinas (BSP) cash department, and the 19 BSP regional cash operations units (COUs) will accept from the public, commercial banks, thrift banks, and rural banks the following national currency banknotes for conversion to pesos beginning Oct. 1, 2001 up to Jan. 25, 2002. These are: Austria (Austrian schilling); Belgium (Belgian franc); Finland (Finnish markka); France (French franc); Germany (Deutsche mark); Greece (Greek drachma); Ireland (Irish punt); Italy (Italian lire); Luxembourg (Luxembourg franc); Netherlands (Netherlands guilder); Portugal (Portuguese escudo); Spain (Spanish peseta).
After Jan. 25, 2002, the BSP will no longer accept these national currencies. The holders/bearers thereof will have to send the old national currencies directly to the country of origin for redemption.