The euro was used in the "vast bulk" of cash transactions at the weekend, the Euro Changeover Board said yesterday.

With more than two million Irish consumers using the single currency since its introduction on New Year's Day, the European Commission said special deliveries of smaller denomination notes had been organised in the Republic, Spain and the Netherlands.

Conversion operations were "virtually complete", the Commission said in a statement following trading on the euro's first Saturday, the busiest shopping day of the week. About 99 per cent of ATMs issued only the euro over the weekend, the Commission said.

The chairman of the changeover board, Mr Philip Hamell, said the volume of transactions carried out only in euro was rising steadily.

CIÉ advised students returning to school or college by bus or train this morning to purchase a pre-paid ticket or have the exact fare ready. Change receipts will not be issued by Dublin Bus.

While currency traders warned that expectations of a strong new year rally in the single currency were likely to subside this week, the European Commission said the speed of the changeover reflected enthusiasm for the new currency among consumers.

The Commission said euro notes and coins accounted for more than half of commercial transactions throughout the 12-member zone.

Consumers showed a tendency to use up large denomination notes of their old national currency in shops while exchanging smaller denomination notes in banks. This caused a shortage of small denomination notes, necessitating special deliveries. The Commission urged consumers to change large-denomination notes at banks rather than shops.

"The euro has become the main currency used by the European public to make cash payments," it said. "Generally speaking, queues in shops, and large stores too, are no longer than usual."

In the Republic, along with Austria, Finland, Portugal, Luxemburg and Germany, up to 65 per cent of transactions were carried out in the new currency.

The highest conversion rates of up to 80 per cent were reported in the Netherlands and Greece.

With conversion rates of 25-50 per cent, France and Spain were the laggards, in addition to Italy, where the foreign minister, Mr Renato Ruggiero, resigned after a row over the currency.

But traders cautioned that the euro's smooth introduction would not necessarily bolster its value on the international markets. After a steep rise against the dollar at the start of last week, the euro ran out of steam. By close of business on Friday, the euro was trading at $0.895+, close to its average level over the past 12 months.

"It looks like the euphoria surrounding the smooth launch of notes and coins is fading fast," said Mr Paul Meggyesi, senior economist at Deutsche Bank.

"From the first days of trading it does not appear that the euro has any new sense of direction."

The European Central Bank has repeatedly stated that the euro's relatively weak valuation was not a true reflection of the economic strength of members of the euro zone.