Llangollen is popular with tourists

Llangollen shopkeepers made the tourist town the UK's first official eurozone in July last year.

During the International Musical Eisteddfod competitors and local people alike were allowed to use the fledgling currency alongside the pound.

Twelve months on, the town's tills can still ring to the sound of the euro and traders have now been asked by the Eisteddfod's organisers to accept the dollar too.

Ruth Davies: Llangollen should accept all currencies

"The decision not to enter into the single currency is one which will not affect the way Llangollen approaches this very special week and will be a perfect example of how a Euro Britain will work," said International Eisteddfod chief executive Gwyn L Williams.

However, Stuart Davies, a former Llangollen mayor and local businessman said the scheme is a marketing ploy.

"I was against turning Llangollen into a eurozone last year because we already accepted euros," he said.

"I only took ten euros and that was off a local who'd been to Spain."

But fellow shop owner Gordon Bagnall said accepting foreign currency made good business sense.

"All shops which cater for overseas visitors accept US dollars, Japanese yen and euros automatically," he said.

Public opinion

However, he agreed with the Chancellor who announced on Monday that the time was not right for the UK to join the euro.

"I don't think we should go into the euro, period. I think to lose the control over our own economy, when our economy is so different from Germany's, would be a foolish thing to do."

Mike Body who owns the Welsh Lovespoon Centre in the town and is a member of the Chamber of Trade and Commerce said a single currency would help local businesses.

"It's about time we showed to the people of the world that we can accept all currencies across the board," he said.

"The euro would be a good thing to use during the Eisteddfod week in July to get people of this country used to using it."

Stuart Davies is against a single currency

Meanwhile, Tony Blair has said a poll on the euro could be held before the next general election.

Amongst the Llangollen residents there is mixed feeling about joining a single currency and the effectiveness of the euro and US dollar scheme in the town.

"I wouldn't say we're pro European, we're pro everywhere really, as the setting up of the Eisteddfod after the Second World War proved," said Ruth Davies.

"We want to create harmony throughout the world and not just Europe."

Sarah Bather added: "I know there was a hoo-haa last year about the euro with certain people but I think it will be fine.

"It can only be a good thing for the tourism and that's what Llangollen lives on."

The Llangollen Musical Eisteddfod runs from 7th July to 13 July.