The euro is one of the most important currencies in the world. We keep an eye on and report on the use of the euro outside the euro area. We are developing future banknotes to make them even more secure, sustainable and relatable to Europeans of all ages and backgrounds. Find out about the different steps in the process and how you can get involved.
The official date on which the national currencies ceased to be legal tender varied from member state to member state. The earliest date was in Germany, where the mark officially ceased to be legal tender on 31 December 2001, though the exchange period lasted for two months more. The earliest coins to become non-convertible were the Portuguese escudos, which ceased to have monetary value after 31 December 2002, although banknotes remained exchangeable until 2022. The ECB targets interest rates rather than exchange rates and in general, does not intervene on the foreign exchange rate markets. This is because of the implications of the Mundell–Fleming model, which implies a central bank cannot (without capital controls) maintain interest rate and exchange rate targets simultaneously, because increasing the money supply results in a depreciation of the currency. In the years following the Single European Act, the EU has liberalised its capital markets and, as the ECB has inflation targeting as its monetary policy, the exchange-rate regime of the euro is floating.
How does the euro help Europeans do business?
The EU reassured investors that it would guarantee the debt of all eurozone members. At the same time, it asked indebted countries to install austerity measures to ratchet down their spending. To future-proof our money, we are also preparing for a possible digital euro. It would be like cash, but digital – allowing you to make and receive payments online and offline across the euro area, without additional costs.
When was the euro introduced?
Outside Europe, a number of special territories of EU members also use the euro as infinox แพลตฟอร์มซื้อขายแลกเปลี่ยน their currency. Additionally, over 200 million people worldwide use currencies pegged to the euro. Although €100, €200 and €500 notes are also available, they aren’t commonly accepted retailers.
The central bank in Europe is called the European Central Bank (ECB). It is the second-most traded currency on the forex market, after the US Dollar, and also a major global reserve currency. Other common names for the Euro include Yoyo (Irish English), Leru (Spanish), and Ege (Finnish). In 2007 Slovenia became the first former communist country to adopt the euro. Having demonstrated fiscal stability since joining the EU in 2004, both Malta and the Greek Cypriot sector of Cyprus adopted the euro in 2008. Other countries that adopted the currency include Slovakia (2009), Estonia (2011), Latvia (2014), Lithuania (2015), and Croatia (2023).
- In other states, the program is sponsored by Community Federal Savings Bank, to which we’re a service provider.
- Here at the European Central Bank, we work to safeguard its value.
- The European Commission and the European Central Bank jointly decide whether the conditions are met for euro area candidate countries to adopt the euro.
- Greece initially failed to meet the economic requirements but was admitted in January 2001 after overhauling its economy.
- It would be like cash, but digital – allowing you to make and receive payments online and offline across the euro area, without additional costs.
Discover more about euro-related topics
It was introduced as a noncash monetary unit in 1999, and currency notes and coins appeared in participating countries on January 1, 2002. After February best day trading strategies that work in 2020 28, 2002, the euro became the sole currency of 12 EU member states, and their national currencies ceased to be legal tender. Unlike most of the national currencies that they replaced, euro banknotes do not display famous national figures.
The euro unites us in diversity, as reflected by the two sides of our coins. They have a common side symbolising unity and a national side showcasing our rich and diverse cultural heritage. The euro unites us – it’s used by about 350 million people across 20 European Union countries. The euro is a beacon of stability and a symbol of European unity. Here at the European Central Bank, we work to safeguard its value. These binding economic and legal conditions were agreed in the Maastricht Treaty in 1992 and are also known as ‘Maastricht criteria’.
Wise Products
The definitive values of one euro in terms of the exchange rates at which the currency entered the euro are shown in the table. Banks often advertise free or low-cost transfers, but add a hidden markup to the exchange rate. Wise gives you the real, mid-market, exchange rate, so you can make huge savings on your international money transfers. The euro was initially proposed as the official currency of the entire European Union in order to unify the countries. All 28 member nations pledged to adopt the euro when they joined the EU, but they must meet budget and other criteria before they can officially switch currencies. As of 2021, they were Bulgaria, Croatia, Czechia, Hungary, Poland, Romania, and Sweden.
These are further ratified by the ECOFIN Council in consultation with the Parliament and Heads of State. The following EU member states committed themselves in their respective Treaty of Accession to adopt gamestop leads meme stocks lower, on track for sharp weekly drop the euro. However they do not have a deadline to do so and can delay the process by deliberately not complying with the convergence criteria (such as by not meeting the convergence criteria to join ERM II). Bulgaria and Romania are actively working to adopt the euro, while the remaining states do not have a migration plan in progress.