BUSINESSES rather than individuals are more likely to feel the impact of tomorrow's euro currency launch.

Swindon HSBC's business banking expert, Steve Parsons, said local firms who trade with Europe may have to consider banking in euros if they want to maintain their competitive edge.

Euro bank accounts are already available from most banks. Using one means a firm can bill its eurozone clients in their own currency, insulating them from fluctuations between the value of the pound and the euro.

Mr Parsons said: "They have got to consider how they are exposed to foreign exchange risk. Traditionally British firms have been able to trade in sterling overseas, but now European com-panies may be more happy trading with someone who also trades in euros because they don't carry the same exchange risk.

"For a company that both imports and exports within Europe it makes sense to have a euro denominated currency account."

HSBC has run such accounts since January 1 1999 when the euro was first launched as a currency for non-cash trading purposes.

Like other banks and businesses HSBC will be able to order in the new euro notes from January 2 and they are expected to take three working days to arrive.

In the mean time, the 12 old European currencies will remain legal tender until the end of February in most countries.

Mr Parsons urged anyone who still has any old drachmas, francs, guilders or deutschmarks to get them changed up as soon as possible. Banks within the eurozone will convert any of the old currencies for free until June.

Those not intending to travel abroad before June can get their old notes changed at banks until the end of February.

Mr Parsons said: "We are getting all sorts of notes in from our customers, the main thing people are worried about is that they are going to lose money."

Nationally some £500 million worth of eurozone currencies has yet to be handed in by UK residents.

Coins cannot be exchanged but they can be handed to HSBC branches to raise money for a good cause UNICEF (The United Nations Children's Fund). The bank has also promised to match any money raised up to a total of £50,000.

Mr Parsons urged anyone concerned about the effect of the euro on their business to talk to a specialist financial advisor at their bank. And he said anyone hoarding old European currencies should get them changed into euros or sterling before it is too late.

Daniel Stabbins, the owner of Old Town Hardware in Wood Street, said he would be adopting a "wait and see" position on the euro.

He said: "I will think about opening up a euro account to pay my suppliers in euros.

"If I have lots of people coming in to my store want-ing to pay in euros then I might do so, but it's very expensive for a small business."

Marks and Spencer, which has a store in Regent Street, will be accepting the euro from January 1, and service manager Di Blake said that all staff have been trained in handling the new currency.

She said: "Our tills are all set up to accept the euro. We won't be exchanging it but our big stores will.

"The price tags will all be in sterling but if someone wants to pay in euros the price will be displayed at the till."

Any Wiltshire and Berkshire companies with concerns about the euro currency changes can obtain advice from the International trade team or other specialists at Business Link.

Contact Business Link Berkshire and Wiltshire on 0845 600 4141.