Early on January 2nd most banks and building societies will hold a quick refresher course in the various branches to ensure they can offer the best service to customers.

They are expecting long queues, a certain degree of confusion and maybe a few bad-tempered exchanges but are generally optimistic that the switch to the euro will be relatively straightforward.

This will be the first time that bank staff will get a chance to put their extensive euro training into practice. After years of training sessions, committees, information briefings and dummy runs, there will be some relief when E-Day arrives.

Banks and building societies are well prepared for the euro. The industry is estimated to have spent more than €130 million (£102 million) on these preparations, most of which was invested in technological enhancements to cope with the changeover.

For most banks planning began in 1995 and 1996. The main focus at that point was to ensure its systems could cope with the adoption of the euro in the wholesale money markets, which happened in January 1999. This was achieved without too many headaches and gave the sector great confidence that the second phase would also go smoothly.

It has been a logistical nightmare to organise - even within six years.

The Irish Bankers Federation (IBF) took a lead role early on in devising a forum within which the industry would work together to the benefit of all customers.

"It was never going to be good enough for one bank to be independently confident that it was going to be all right on E-Day while there could be problems elsewhere," IBF spokesman Mr Felix O'Regan, said. "It was in all our interests to make sure we got it right."

The banks' capital markets divisions, which source funding on the international money markets for the retail network, have been living with the euro since 1999.

"It's been a long haul so there is a feeling that we are well prepared. There will be some teething problems but, with patience and understanding, things should be ok," he said.

The key factor for the industry was to ensure that the banking system, which allows customers to use cash machines operated by other financial institutions, to continue to be able to do this after January 1st.

A unified approach was also essential to ensure that the clearing system, through which cheques are processed, was not disrupted.

It is clear from the uniform closing of all cash machines in the Republic, from 1.30 a.m. on January 1st for some time, to allow the conversion to euro notes that such an approach has been adopted.

The Republic is one of the EU member-states switching to the euro to opt for one of the shortest changeover periods of just six weeks. By February 9th it is envisaged that all pound notes and coins will have been withdrawn from circulation and replaced by the euro.

The banks will have a key role to play in meeting this deadline.

While the decision to operate within a very tight deadline was a political one, as one of the smaller banking markets in the EU most observers believe it is feasible. The number of bank accounts in the Republic is also relatively small, which is another factor in the sector's favour

The interbank system in the State is at least unified and can ensure a relatively smooth transition compared with other EU member-states, where arrangements between the various financial institutions to process each other's cheques and cash cards are quite tenuous or non-existent.

This is the primary reason why, even after January 1st, consumers here and in other EU member-states will not be able to use their euro chequebooks while travelling abroad. And the banking system is showing no ambitions to facilitate this in the future.

The standard reply is that electronic payments will be available and will be cheaper and more efficient for bank customers than using the cumbersome paper system.

The banks claim it would not be profitable for the sector to invest in developing a network to facilitate an outdated system.

Banks and building societies have been meeting customers to discuss the impact of the euro on everyday banking requirements. A wider initiative has endeavoured to help those who may find it most difficult to adjust to the new currency. Community groups, the elderly and others who asked to be briefed by the banks have largely been accommodated.

Bank accounts will be automatically converted to euros on E-Day and statements will continue to show customers balances in both currencies for six months before they revert to just the euro.

Bank staff will be at the forefront of the huge operation to take the pound out of circulation and help customers to cope with the euro. The IBF is calling on the public to exercise patience and understanding in the early days and expect the confusion will be short-lived.