Bermuda's three banks have settled into trading in the new currency.

The Bank of Bermuda's Peter Byrne, vice president of treasury operations, said staff were working on New Year's day and over last weekend converting accounts and testing systems in preparation for January 4, the first day of trading and a public holiday in Bermuda.

"Everything went smoothly,'' he said. "We are active and have been active all week with mutual funds and hedge funds that have been trading in the euro.'' During the week clients did about $750 million worth of trading in and out of the euro.

"It was a normal week,'' Mr. Byrne said. "We are generally impressed with the liquidity and with the spreads.'' Over at the Bank of N.T. Butterfield, staff were also putting in some hours over the weekend to ensure systems and accounts were in order for the euro, chief financial officer Richard Ferrett said.

"Several $100 million'' worth of fixed income government securities of the 11 countries involved in the euro had to be converted to the new currency, he said. Once the bonds mature the clients can elect to get their money in the original currency or stick with euros.

There was another $25 million in cash deposits in currencies that convert to the euro, he said, adding that it will be up to the customer on how they handle the conversion.

"We have had some customer interest in the euro. It will take time for more interest to develop.'' He said the advent of the euro will give `It was a normal week. We are generally impressed with the liquidity and with the spreads.' -- Bank of Bermuda vice president Peter Byrne Bermuda's insurers and portfolio manager another option to hedge their risk.

The bank also invested some of its own funds in the euro to build up a portfolio and experience. The bank plans on launching a euro class in its triple-A rated money market fund.

Bermuda Commercial Bank managing director Peter Roberts said the bank had reduced staff on hand during the holiday to service international clients.

"It all went completely smoothly,'' he said. "We had modest volume, but it was a bit of a non-event. We sent out a newsletter to our clients informing them of the euro and there were a few queries.''