Euro becomes third currency in border town

As people in Ireland grappled with the new euro today, a border town in Northern Ireland was starting to make sense of its new triple currency status.

People in Newry, in County Down, have always dealt in both the punt and the British pound sterling.

But until the Republic of Ireland’s dual circulation of punts and euro ends on February 9, shops, taxi drivers, pubs and other businesses will be taking payments in all three currencies.

Politicians have called on businesses in Northern Ireland to be euro friendly and plans have been put in place in other towns and cities including Derry and Belfast.

In the frost-covered centre of Newry today people were still viewing euro notes with a wary eye.

There has been no special launch of the currency and starter packs of coins and currency converter calculators have not been handed out as they have in the Republic.

Also, there are no hard and fast rules. At the bustling Quayside Inn, punts will be accepted for the next few weeks.

But just next door at Keenan’s bar, a large sign tells drinkers their punts will no longer be accepted and euro will only be welcome after January 7.

Many people from the Republic drive across the border to Newry to shop at the Quays shopping centre - the favourable exchange rate makes trips for alcohol stocks one of the most popular reasons for visiting.

Sainsbury’s, part of the centre, will accept punts but give change in euro at one set of tills. Sterling and euro will be accepted at other tills.

And cash machines at the store were dishing out euro notes.

Picking up customers from outside the centre today was taxi driver Alison McCabe.

She said no real plans had been put in place for the triple currency status.

A quick mental calculation was all that it took to accept euro coins and give back the change in sterling.

‘‘We have not been given stocks of euro,’’ she apologised. ‘‘It will be tricky for the next six weeks with three currencies, but, after that, to have sterling and euro instead of sterling and punts will be easy. You just do the sum a bit differently.

‘‘I have customers pay in punts about twice a week, for me it’s no problem because I can cross the border and use the punts to buy diesel in the south where it is cheaper.

‘‘Some drivers here will not take the punt because of the hassle of having to change it and lose money on the exchange rate.

‘‘In the next few weeks, as the punt is phased out, I think a lot more drivers will start refusing it because they will be worried about being left with lots of worthless cash.’’

The nearby Quayside Inn was packed with families celebrating the New Year. Thousands of pounds sterling were ringing through the tills.

But at the side of the bar sat another till - the designated ‘‘euro till’’, said manager Eugene Patterson.

At the moment one euro is worth 61 pence sterling at the popular canalside pub.

Until the euro becomes more common, change will only be given in sterling from payments in euro.

But the pub will take punt coins until the end of February and notes even longer than that, as many banks in the Republic will continue to convert them into euro well after the February 9 cut off date for dual circulation.

Mr Patterson said: ‘‘There has been no grand changeover or launch party here. It is only the businesses that have been able to get hold of euro notes.

‘‘We have one till set aside just for euro transactions and will check the every day and update it if we need to.’’

Despite the haphazard introduction of the new currency, Newry Town Centre Manager Barry Owen said retailers had been surveyed and he was ‘‘satisfied’’ that they were ready for the change.

It will bring a ‘‘huge economic advantage’’ to Newry, he said.

‘‘Ever since the Irish pound was brought in we have been a dual currency town - there is no shop that will not accept the punt and it will be that way with the euro.

‘‘But because Newry is not in the eurozone there has been no mass distribution of the currency and we have not had starter packs of the coins like in the Republic.’’

He added: ‘‘I imagine it will gradually become part of life here and it will be between four and six weeks before it is in full flow.’’