FRANKFURT, Oct 18: With just 75 days to go before euro cash replaces local currencies in the 12 euro zone nations, the European Central Bank on Thursday stressed the need to smooth the changeover also in countries outside the euro area.

Euro currencies are held in large amounts outside the euro zome and the ECB estimates around a third of marks in circulation are held outside Germany, with the majority probably in east and south-east Europe, including Turkey.

In its October report, the ECB said euros will be distributed to non-euro zone central banks a month ahead of January 1 cash launch on condition the recipients worked to prevent robbery and money laundering of the new notes and coins.

Every effort should be made to ensure a smooth cash changeover both inside and outside the euro area, it said.

Noting that extensive preparations for the euro roll-out had been made within the euro region, the bank said: It is equally important for the Eurosystem to address proactively the issue of the international changeover.

National currencies will stop being legal tender within a couple of months of January 1, 2002 across most of the euro zone, but Germany has set itself an even tighter timetable and the mark loosing its legal tender status from January 1.

Some analysts have said the changeover would depress the single currency, as marks parked in Eastern Europe could be changed into dollars rather than euros, but euro zone central bankers have said this would not have a significant impact on exchange rates.

The ECB also said the new banknotes would be sold to cash-machine manufacturers outside the euro area to allow them to check their machines dispense the new notes.

The new notes would be sold as long as the currency is safely stored until its official launch at the start of 2002, the bank said.

A gigantic media campaign currently underway would also target people in non-euro countries, especially those involved in international business or travel, it said.

Advertising in airports and in-flight media as well as in international press and television will begin in December, the bank said, but it added the campaign had its work cut out.—Reuters