JEDDAH, 2 January — With the euro becoming legal tender from yesterday and replacing national currencies of many European countries, Saudi banks said they were fully ready to deal in it and advised customers to use the euro in all financial transactions that involve participating countries.
The use of euro notes and coins became effective yesterday in an unprecedented 12-country changeover that saw more than 300 million people abandoning their national currencies. The measure has been described as a historic leap toward a more unified Europe.
Local banks said at this stage they would issue drafts and traveler checks in the euro while dealings in banknotes and coins could follow at a later stage.
"From Tuesday we have been ready to issue drafts and travelers checks in the euro. At this stage the dealing will be confined to checks but later the banks will start dealing in banknotes," said a branch manager of a local bank in Jeddah.
Travelers from the Kingdom and other customers making transfers to European countries are provided with the names of the corresponding banks abroad.
The euro yesterday traded at SR3.36 in the money markets, according to rates provided by Al-Rajhi Banking and Investment Corporation.
Bankers said the shift to the euro would make no difference for traders since the euro has already been launched on foreign exchanges three years ago.
