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Main Dictionary E

Euro

Euro is the national currency of 19 eurozone countries. The euro is also the national currency of another 4 states and 8 special areas of the EU. However, unlike members of the euro area, these countries can not influence the monetary policy of the European Central Bank and have representatives there. Euro is the highest aggregate value of cash circulating globally.

Euro explained

The euro is the currency used in the European Union. More than 320 million people use it. The world (global) currency (on a par with the U.S. dollar). Reserve currency (besides the U.S. dollar, pound, Japanese yen and the Swiss franc). The euro inherited its reserve currency status from the German Mark.

Euro was introduced as a currency on January 1, 1999. Euro became available in cash only three years later on January 1, 2002. For two months, that is, until February 28, 2002, the euro and the national currencies of the countries that were first to join the eurozone were used at the same time. After the end of the transition period national banknotes were completely replaced by the euro and ceased to be legal tender. In the countries that joined the eurozone after 2002, the transition periods were shortened to two weeks. Cash euros replaced the national currencies of 19 (out of 28) countries of the European Union.

Nowadays, the European Central Bank (ECB) is obligated to maintain the stability of the euro and its value as a currency. It also determines monetary policy and includes representatives of all EU countries. It remains independent of all other EU members.

The euro is traditionally popular among traders as an alternative to the U.S. dollar. It is used to decrease risks that might occur when investing in currencies during quotation growth or to lessen the possibility of problems with exchange.

Besides that, one should take into consideration that it is more advantageous to pay by debit or credit cards in Eurozone countries in order to avoid a redundant exchange rate.

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