The euro is set to overtake the Irish pound as the main currency in circulation in the Republic by the weekend.
The near trouble-free introduction of new notes and coins raises expectations that most payments will be made in the single currency by the end of next week.
Some €2.5 billion was in circulation by close of business on Tuesday alongside a further £3.7 billion. The figures were released by the Central Bank of Ireland yesterday, as it emerged that consumers using certain AIB cash machines on New Year's Day were overcharged as a result of a technical glitch.
The Central Bank expects the volume of euro notes in circulation to rise rapidly, given the unexpected enthusiasm amongst the public for the new currency.
Social welfare payments today and tomorrow, which will include a large batch of €5 notes, will also give a boost to the amount of euro in circulation. €10 and €20 notes are being dispensed by ATMs with larger notes available from banks and retailers.
The Central Bank has minted 200 million euro notes and 1,000 million coins which it expects to be sufficient to meet the demand for cash across the Republic.
Financial institutions reported long queues yesterday as the public exchanged pounds for euro.
But in the first significant glitch, AIB confirmed that around 1,400 people who used the machines in Ennis, Killorglin, Blackpool in Cork, Tipperary town and on Dame Street and Grafton Street in Dublin were charged for the withdrawal of pounds rather than euro.
The machines had been reconfigured to dispense euro but recorded them as pounds before then converting them to euro when debiting the accounts. One caller to The Irish Times said he withdrew €110 at the Banklink machine in Ennis but €139.67, the euro equivalent of £110, was debited from his account.
An AIB spokeswoman admitted there had been a problem with six machines due to "human error" when the machines were being reconfigured but this had been rectified. "All customers affected will have their accounts credited with the correct amount within 24 hours."
Meanwhile, the euro celebrated its first trading day as a tangible currency yesterday with a rally against the dollar, and its biggest one-day gain against sterling.
The European Monetary Affairs Commissioner, Mr Pedro Solbes, attributed the rise to the successful introduction the currency across the euro-zone. "I think any element of suppressing uncertainty is positive for the future," he said.
But, given the market turbulence which has characterised the euro's performance since its launch three years ago, analysts cautioned against reading too much into yesterday's rally.
However, the chaos which many had feared would undermine the arrival of the euro failed to materialise. Italy was the one euro-zone country reporting widespread problems as long and sometimes angry queues formed at banks, post offices, railway stations and motorway tolls.
Mr Philip Hamell, chairman of the Changeover Board of Ireland, said the introduction of notes and coins in the Republic was working well. Most calls to the Office of the Director of Consumer Affairs yesterday related to businesses not accepting Irish currency. The director, Ms Carmel Foley, noted that the punt was legal tender until February 9th and called on all retailers to provide some facility to allow consumers to spend standard amounts of their old currency.
She also urged consumers to be patient and realistic in their expectations of what retailers can offer. "People treating their local pub or shop like a bank just won't work."