Business, Legal & Accounting Glossary
The Euro is the single currency which has been accepted and is used in 15 countries belonging to the European Union’s member states. Introduced in 1999, the Euro had a significant role in integrating European nations. Presently, an estimated population of 320 million, are using and enjoying the benefits of this currency. It is expected that with more European nations joining the European Union reach of the Euro will increase manifold.
The Euro (€) is the currency of 12 countries of the European Union: Germany, France, Italy, Belgium, Greece, Ireland, Luxembourg, the Netherlands, Spain, Austria, Portugal and Finland. A few other countries, like Monaco and Montenegro, have adopted the Euro as either its official or de facto currency. The only major European country that is not using the Euro is the United Kingdom. The Euro was introduced at the beginning of 1999 and went into general circulation at the start of 2002. The impact of the Euro has been mixed. The Euro has greatly reduced currency transaction charges in participating countries. The Euro also has made life easier for businesses and travellers who can now deal with a single currency. Some European consumers, however, believe that companies used the introduction of the Euro to raise prices. Other Europeans regret that the Euro has replaced their national currencies, to which they had both practical and emotional ties. The Euro has also limited the ability of European nations to carry out monetary policies that are tailored to economic conditions in their own country.
Euro was launched as a virtual currency in 1999 on the 1st of January and accepted as the official currency of 11 EU member states. Banknotes and coins of Euro were introduced on 1st January 2002. The United Kingdom and Denmark, though members of the European Union, have not accepted the Euro as their currency.
Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Portugal, Spain, and the Netherlands were first 11 European Union countries which adopted Euro in 1999. Greece introduced Euro in 2001, followed by Slovenia in 2007 and Cyprus and Malta in 2008.
Using a single currency has a number of advantages:
All European Union member states belong to the Economic and Monetary Union, EMU, which aims to establish close coordination between the fiscal and economic policies of constituent member countries. For working towards this objective, EMU introduced the Euro in 1999.
The European Central Bank, ECB, is entrusted with the responsibility of the monetary policy of the Euro. The ECB together with the national central banks of member nations constitutes the Eurosystem.
Euro banknotes are available in denominations of € 500, € 200, € 100, € 50, € 20, € 10 and € 5. 100 cents constitute € 1. Coins are available in denominations of 1 cent, 2 cents, 5 cents, 10 cents, 20 cents, 50 cents, € 1, and € 2.
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This glossary post was last updated: 26th March, 2020 | 0 Views.