Sterling will depreciate in value after the launch of the euro in 1999 and before Britain's entry into EMU in 2002, the group economist of ICC Bank, Ms Mary Doyle, said yesterday. She said that the euro would have to look to a larger market where it would have greater acceptance and stability in that period.

"In adjusting to sterling outside the euro for the next five years, Irish businesses should reconsider ways of adapting, for example, if exporting to the UK, check on sourcing imports from there also," she said.