The euro has been launched successfully on the international financial markets. Already it has been accepted as one of the major international currencies, as investors weigh up its appropriate value against the US dollar and the Japanese yen. Technical problems in computer systems do not seem, at this stage, to have amounted to anything more than glitches. The first - and important - hurdle in the launch of the new currency has been overcome.
Further challenges lie ahead for Europe's policymakers. Inevitably, given the nature of international financial markets, the euro will run into volatile trading periods from time to time, which may be difficult for the European Central Bank to deal with. A particular problem would be if the new currency strengthened too rapidly on the markets, as this would restrict exports from the euro zone at a time when economic growth in much of continental Europe is sluggish.
The European Central Bank has already shown that it is alive to the risk of an economic slowdown, with the base interest rate across Europe cut to 3 per cent in the weeks leading up to the launch of the new currency. Even though this is a low interest rate, the ECB must remain open to the possibility of further reductions later in the year. After all, the slowdown in Japan and much of the rest of Asia still threatens the international growth outlook, while the prospects for the US also remain uncertain.
Lower interest rates would not suit the booming Irish economy, of course. However, there is little that Ireland can do to influence ECB policy, as our economic growth is out of line with most of the rest of the euro zone. The prospect of a further fall in borrowing costs highlights the importance of continued Government attention to try to ease the situation in the housing market in the months ahead.
Another intriguing issue has also surfaced in the first week of the euro's life. There is some international support for greater co-operation to control the movements of major currencies against each other. The Japanese, French and German governments all seem to be interested, although how such a scheme would operate remains unclear. Mr Wim Duisenberg, the president of the European Central Bank, has already warned against such a strategy. Indeed, he has even told Europe's governments to leave the management of the euro to the central bank. Mr Duisenberg has a point. Targeting an exchange rate for the euro against the US dollar and the Japanese yen would be a very ambitious - and potentially dangerous - strategy. Given the different factors affecting each currency, even setting appropriate targets would be difficult. That said, there may well be scope for greater international co-operation to limit damaging currency swings fuelled by speculative financial flows. Mr Duisenberg's "hands-off" message will meet opposition in France and Germany, in particular. Indeed, striking the appropriate balance between control by member governments and the independence of the central bank will be no easy task. Further tensions in this area are likely to be a prominent feature of the coming months, as everyone gets used to the euro.