What is the euro (EUR)? Basic information about the euro currency

Description

The official currency used in the Eurozone is the euro (EUR). The eurozone consists of the 17 states of the European Union: Austria, Cyprus, Estonia, Portugal, Belgium, Germany, Malta, Portugal, Netherlands, Italy, Ireland, Greece, Luxemburg, France, Slovakia, Spain, and Slovenia. The euro is the second-largest currency that is traded worldwide.

Economy

  • The euro is seen as a macro-economy system. It gives the countries that are part of the eurozone economical stability.
  • Trade industry increased by 5% since the implementation of the Euro.
  • Exchange rate risk is reduced for all the countries in the eurozone.
  • Most countries also experienced a reduction in interest rates.
  • Tourism in the EU countries has also increased by 6.5% because of the common currency.
  • The euro is rated as a major reserve currency and is in the same league as the Japanese yen, US dollar, British pound, and Swiss franc.
  • The exchange rate for the euro is a floating or flexible rate.

History

  • In 1992, the euro was established by the Maastricht Treaty.
  • Strict rules were given to the member states before they could become part of the eurozone. Two countries were exempt from the rules–the United Kingdom and Denmark.
  • The name was established in 1995, when the euro replaced the “European currency unit”.
  • The euro unofficially replaced the European currency unit in 1999. In 2002, all old currencies were discontinued and replaced by the new Euro notes and coins. Member countries discontinued their old notes and coins at different times.
  • The euro unofficially replaced the European currency unit in 1999. In 2002, all old currencies were discontinued and replaced by the new euro notes and coins. Member countries discontinued their old notes and coins at different times..
Symbols
NicknamesNone
ISO 4217 codeEUR
Central bankEuropean Central Bank
Currency subunitsCent = 1/100
DenominationsBanknotes: €5, €10, €20, €50, €100, €200, €500
Coins: 1c, 2c, 5c, 10c, 20c, 50c, €1, €2
Countries using this currencyAustria
Belgium
Cyprus
Estonia
Finland
France
Germany
Greece
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Portugal
Slovakia
Slovenia
Spain
Andorra
Monaco
San Marino
Vatican City
Saint Barthélemy (French territory)
Saint Pierre and Miquelon (French territory)
Kosovo
Montenegro
Currencies pegged to EURBosnia and Herzegovina convertible mark
Bulgarian lev
Cape Verdean escudo
CFA franc BEAC
CFA franc BCEAO
CFP franc
Comorian franc
Croatian kuna
Maltese scudo
Moroccan dirham
São Tomé and Príncipe dobra
EUR is pegged toNone