Although Britain is not one of the 11 European Union countries setting up the single currency on January 1, the City of London, as the worlds leading centre of international finance, is at the cutting edge of preparations.

Banking and trading giants, such as Merrill Lynch and Goldman Sachs, have been preparing for months for the disappearance of 11 currencies such as the German mark and French franc into the single Euro.

But the vital last steps must wait until the magic hour of 1200 GMT, Thursday, December 31 when the European Commission will publish the proposed rates at which the 11 Euro-zone currencies will be locked into the single currency.

Only then will traders be able to convert balances and financial instruments previously valued in 11 independent currencies intothe single Euro rate.

Markets in most of the world will then be closed for the long New Year's weekend, giving the city a short gap in which to prepare for the opening of markets in the Far East and then, after a total of 92 hours, the opening of European markets on Monday, January 4.

The rush to prepare is expected to transform what would usually be a deserted weekend City district. ``We estimate about 30,000 people will be working on January 1,'' said a spokesman for the Corporation of the City of London, the financial district's municipal authority. ``Usually everything would be shut, but this is something special.''

Just to help bring in staff at a time when the rest of the country is taking time off, the municipal authority is footing the bill estimated at Pound 6,000 ($10,800) to keep a key commuter train link running.

The underground link direct from Waterloo train station to the City financial district, a lifeline for commuters, would ordinarily close for the day on January 1.

In thefinancial institutions of LondonŐs famed square mile, the project has been planned with military precision, with some big companies even staging dress rehearsal `Euro conversion weekends.'

Banks are having to ensure that there will be everything from technical support to food and hotel rooms for employees, some of whom will work throughout the night. Champagne, banks say, is being kept off the menu, but the pill of having to work while the rest of the nation is partying will be sweetened with bonuses up to Pound 600 ($996) a day.

However, Michael Lewis, senior economist at Deutsche Bank, said that actual trading will be thin on the ground. Only a few markets will open around the world on January 1, such as in Bombay, and investors will largely be waiting for the D-Day of Monday to test the effects of the new 11-country currency.

Another reason for very low levels of trade around the conversion period will be investor caution, although the very fact that volumes will be thin could exaggerate thevolatility of prices.

``Certain markets with very small business could get whipped around the place,'' Lewis warned. ``But the central banks will be there to contain volatility.''

Lewis said that the European Central Bank based in Frankfurt will have a Euro weekend task force. ``I think the central banks are pretty much in control and people are encouraged by that.''