On 1 January 2001, the new conversion rate. The Bank of Greece becomes a member of the Eurosystem. Greece joined the Eurozone and the irrevocable conversion rate for drachma in euro was set at: 1 euro = 340.750 drachmas. The Bank of Greece became a member of the Eurosystem, which comprises the European Central Bank (ECB) and the National Central Banks of those countries that have adopted the euro.
On 1 January 2001, the new conversion rate. The Bank of Greece becomes a member of the Eurosystem. Greece joined the Eurozone and the irrevocable conversion rate for drachma in euro was set at: 1 euro = 340.750 drachmas The Bank of Greece became a member of the Eurosystem, which comprises the European Central Bank (ECB) and the National Central Banks of those countries that have adopted the euro.
The Bank of Greece, cooperated with all competent authorities, the Ministries of National Economy and Finance, the Hellenic Bank Association as well as the ad hoc committee (GRECO task force) established at the ECB for the successful introduction of the euro.
2 January -31 December 2001: The transitional period begins. Immediately after the adoption of the single currency by Greece, a transitional period followed, during which the euro was used only in scriptural form and the domestic market formed part of the integrated euro area market. The transitional period ended on 31 December 2001 with the introduction of the euro as a physical currency, simultaneously with the other 11 EMU countries.
During this period the monetary policy was conducted in euro, the credit institutions' current accounts held with the Bank of Greece were denominated in euro, and all transactions in the interbank money market were carried out in euro.
However, the fiscal policy operations (i.e. government receipts and payments) during that transitional period, were carried out in drachmas, although key government accounts were expressed in euro, too. The 2002 government budget was denominated in euro. New issues of government securities were denominated in euro, whereas outstanding past issues were re-denominated in euro.
September - December 2001: Frontloading with euro banknotes and coins. In order to ensure the smooth functioning of the market during the first days of 2002, the Governing Council of the ECB decided to permit the frontloading of euro banknotes and coins to credit institutions and retailers.
The Bank of Greece supplied commercial banks with euro coins as from 1 September 2001 and with euro banknotes as from 1 October. The frontloading of euro coins to banks started earlier, as the transportation of coins was considered more difficult due to their large volume and weight.
The commercial banks, to which the Bank of Greece had frontloaded euro coins and banknotes, sub-frontloaded to retailers euro coins from 1 November 2001 and low-denomination banknotes (€5 and €10) from 1 December. As from the same date, retailers could receive euro coin packs of a value ranging from €111 to €300. Banks and retailers undertook not to put euro banknotes and coins into circulation before 1 January 2002.
Apart from the dates on which the frontloading of the commercial banks and retailers would start, the National Cash Changeover Plan provided for the frontloading to the public, as of 17 December 2001, of starter kits containing 45 euro coins of all denominations worth 5,000 drachmas (€14.67 euro).