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EFMA FIFTH ANNUAL MEETING2002 the euro in circulationUK DECIMALISATIONMalcolm LevittE. U. Adviser - Barclays PLC17th December, 1999THE CHANGES£. s. d. pre 1971 £1 = 20 Shillings = 240 pence ‘D’ Day £ p 15-2-1971 £1 = 100 new pence New coins New scale for measuring relative values Acid tests for success were: - acceptability - understanding of the new system by the general public £. s. d. to £.p
Quite complicated change - new system for measuring relative values, some coins withdrawn, some new coins introduced THE DECISIONHalsbury Committee 1961-63 Change and date announced 1-3-66; £1 = 100p i.e. ‘new penny’ as the smallest unit Legislation approved July 1967 - confirming the coin units Decimal Currency Board, Dec 1966 - i.e. Parliamentary approval came later CHANGEOVER PERIODLow value £.s.d coins legal tender during changeover Enable machinery conversion/replacement Shops encouraged to operate in either old or new system not both Some coins useable either Decimal shops customer’s change p £.s.d shops - £.s.d change Banks provided £.s.d coins on request but operated decimal otherwise Banks closed 4 days pre-D day to convert accounts, machinery, clear £.s.d cheques D day - cheques, bills all decimal immediately No compensation to business/banks Banks operated internally decimal from D day Business encouraged to imitate banks Long period of certainty/preparation Govt. departments, Post Office, big business decimal D1; most wages in £p quickly According to a DCB survey, 99% retailers decimal D + 6 weeks - under 50% dual pricing then legally changeover ended D + 6 months - in practice in 2 months Success story CRITICAL SUCCESS FACTORSEarly policy decisions No fundamental political/public opposition Long preparation period Close co-operation DCB, Treasury, Mint, banks, machine companies, other sectors BBA closely involved in DCB decisions - no policy decisions without consulting BBA Effective publicity - acid test : public understanding and acceptance 24 months before D Day - booklets for retailers 21 months before D Day - booklets for teachers 18 months before D Day - public campaign aimed at business, trade associations 14 months before D Day - leaflets for general public in libraries 12 months before D day - booklets for every household TV and radio campaign in final months D.C.B. PREPARATIONSEarly contacts with private sector Research into volume of new coins needed while containing costs Psychological research/testing of new coin designs Frequent surveys of state of preparation - basis for publicity campaigns reference guides for business, newsletters; special booklets (2 million) for all retailers early Guide for every household - planned, tested over 18 months Close co-operation with education authorities - guides for every teacher and every school Shoppers conversion tables CASH LOGISTICSEarly planning of storage - average turnover over 4 weeks in same period previous year - cash centres Pre-issue distribution crucial, over up to 2 years in advance Major branches used by smaller, distribution to smaller near D day Survey of all branch needs, storage, transport requirements 3,500 tons new coins distributed by Barclays NB withdrawal of existing coins - parallel operation - collection from branches, collection dates set, ‘audit’ trail documentation established (branch, cash centre, mint, carrier) Timing - low cash useage date set (February) Co-operation essential
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