The last few months have seen great steps forward in the level of preparedness for the euro. After all, we are now at the stage where decisions are being made on such issues as to the location of the euro symbol on our keyboards.

However, this new level of detail underpins a myriad of issues that still remain unresolved as "e-day" approaches. The question of our trading links with Britain and Northern Ireland is sometimes pushed aside within the context of the newly created "euroland". Because Britain is still our single largest export market and the current pound/sterling exchange rate risk will remain for as long as Britain is an "out" country. While it remains to be seen how the markets will view the euro, it seems likely that it will be a "hard" currency. It has been predicted that the euro will become the second reserve currency of the world after the dollar - particularly as current uncertainty in Asia is undermining the yen.

It looks set to catch hold quickly in the business world. The so-called "creeping euro" concept has continually gained support since indications by some major European multinationals that they will be invoicing in euro from January 1st, 1999, regardless of the country of origin of the supplier. The "creeping euro" theory is the belief that the use of the euro for invoicing suppliers by companies in the euro zone will lead to a proliferation of the currency in Britain. Therefore, in order to minimise the risks, invoicing in euros is an advisable and viable option for British industry.

Barclays Bank has opened over 28,000 euro accounts for its corporate and small business customers, illustrating the importance of the euro in the eyes of British-based banks.

Issues being addressed by bankers include the ongoing debate as to the calculation of interest rate days.

The problem is that Britain and Ireland traditionally calculate interest rate days on a 365 day basis (the calendar year). However, the vast majority of other countries in the European Union calculate this on a 360 day basis. This means, for example, when extracting the daily rate for a 5 per cent per annum interest rate, the result will be marginally different as the rate is divided by 360 or 365. Therefore, there is a need to adjust the rate to ensure consistency.

The decision now needs to be taken as to whether to maintain the two different day counts - and, therefore, two adjusted interest rates - or to switch completely to the European norm. The question needs to considered for both wholesale and retail markets. I believe that the following would be the best compromise - to calculate on a 360 day basis in the financial wholesale market and a 365 day basis in the financial retail market.

Once the transition period ends on December 31st, 2001, both retail and wholesale financial markets will need to quote on a 360 day base. A clear definition of both will be needed, as well as an awareness campaign for retail customers prior to 2002, so that the 360 day count can be universally understood and accepted.

An issue that is also taxing the minds of Europe's bankers is the position regarding public holidays. There are only two common bank holidays amongst all the euro zone countries - Christmas Day and New Year's Day. A dilemma arises if a customer wishes to make a payment on St Patrick's Day. At present, banks in Ireland would be closed for this day, but if other euro zone banks are open, as is the European Central Bank, there may be a customer demand for a limited service. This type of problem illustrates the need for banking systems across Europe to be more integrated and to have a capacity to talk to each other. However, the cost of this utopian integration is astronomical.

Barclays alone, as a European bank, is committed to spending over £170 million sterling on the euro including integrating our own systems across Europe, thus giving an indication of the magnitude of attempting total integration.

The benefits of the introduction of the euro far outweigh any teething troubles, as the positive knock-on effect for customers through price transparency and more efficient cashflow management are substantial. Banks have recognised that effective cashflow management will be an absolutely essential ingredient in the new Europe and are ready to advise customers of the opportunities.

It is imperative that we also keep a firm eye on developments in Britain and manage the inevitable risk in these uncharted waters. We will be witness to the most important event in world financial markets in recent years - if only for that reason there is no room for complacency.

Nevertheless, there is room for rising to the challenge, asking the awkward questions and seizing the inherent opportunity to more effectively manage our businesses.

Mr Paul Shovlin is managing director Ireland at Barclays Bank. The views expressed are personal.