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 | € |
| Nicknames | None |
| ISO 4217 code | EUR |
| Central bank | European Central Bank |
| Currency subunits | Cent = 1/100 |
| Denominations | Banknotes: €5, €10, €20, €50, €100, €200, €500 Coins: 1c, 2c, 5c, 10c, 20c, 50c, €1, €2 |
| Countries using this currency | Austria 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 EUR | Bosnia 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 to | None |