The establishment of a common currency had the aims of greater economic integration and the unification of Europe as a common market. ", "S&P downgrades euro zone's EFSF bailout fund", "Euro crisis brings world to brink of depression", Germany would do well to heed the Moody's warning shot, Germany, Juncker Push Back After Moody’s Rating Outlook Cuts, "Dollars Are Out, Euros Are In as U.S. Sanctions Sting Venezuela", "Currency Composition of Official Foreign Exchange Reserves (COFER) – Updated COFER tables include first quarter 2009 data. [44], The euro was established by the provisions in the 1992 Maastricht Treaty. The Belarusian ruble is pegged to the euro, Russian ruble and US$ in a currency basket. Since 2005, stamps issued by the Sovereign Military Order of Malta have been denominated in euros, although the Order's official currency remains the Maltese scudo. The coins also have a national side showing an image specifically chosen by the country that issued the coin. Afghanistan / Afghan Afghani [ ؋] 2. [43] Placement of the currency sign relative to the numeric amount varies from state to state, but for texts in English the symbol (or the ISO-standard "EUR") should precede the amount. [68] However, even before the creation of the single currency, there were concerns over diverging economies. Symbol – the global graphic symbol used as a shorthand for a currency name with money amounts.. Digital Code – the three-digit numeric code for the currency assigned by the ISO 3166-1 … Within the EU several currencies are pegged to the euro, mostly as a precondition to joining the eurozone. An economic and monetary union (EMU) was a recurring ambition for the European Union from the late 1960s onwards. Most of Europe is now using a single currency, the euro. [4][5][6]. They were set so that one European Currency Unit (ECU) would equal one euro. Official practice for English-language EU legislation is to use the words euro and cent as both singular and plural,[114] although the European Commission's Directorate-General for Translation states that the plural forms euros and cents should be used in English. The dominance of the Euro is clearly observed, now the 27 independent countries and dependent territories use it as the legal tender. In the Maastricht Treaty, the United Kingdom and Denmark were granted exemptions per their request from moving to the stage of monetary union which resulted in the introduction of the euro. [26] In practice, the ECB's banknotes are put into circulation by the NCBs, thereby incurring matching liabilities vis-à-vis the ECB. The central bank in Europe is called the European Central Bank (ECB). Pegging a country's currency to a major currency is regarded as a safety measure, especially for currencies of areas with weak economies, as the euro is seen as a stable currency, prevents runaway inflation and encourages foreign investment due to its stability. The euro is also widely used by other states outside the EU. It has been found that the introduction of the euro created "significant reductions in market risk exposures for nonfinancial firms both in and outside Europe". [77] The need to finance trade deficit weakens currency making exports automatically more attractive in a country and abroad. [86] Regarding foreign direct investment, a study found that the intra-eurozone FDI stocks have increased by about 20% during the first four years of the EMU. Physical investment seems to have increased by 5% in the eurozone due to the introduction. Object name. The changeover period during which the former currencies' notes and coins were exchanged for those of the euro lasted about two months, until 28 February 2002. [61] There are also various currencies pegged to the euro (see below). Country, capital and currency is one of the most important topics in terms of Static GK for the various Government exams conducted in the country.. The United Kingdom and Denmark negotiated exemptions,[25] while Sweden (which joined the EU in 1995, after the Maastricht Treaty was signed) turned down the euro in a non-binding referendum in 2003, and has circumvented the obligation to adopt the euro by not meeting the monetary and budgetary requirements. The following are official and unofficial currencies used within the borders of the 27 EU Member states: Swiss franc is the official currency and euro is widely accepted. Eleven countries formed an economic and political structure in Europe. The euro accounts for the majority of the member states with the remainder operating independent monetary policies. archaeology [remove] 42; Media available. (For macroeconomic theory, see below. Additionally, over 200 million people worldwide use currencies pegged to the euro. In 2009, Zimbabwe abandoned its local currency and used major currencies instead, including the euro and the United States dollar.[62]. A study found that the introduction of the euro accounts for 22% of the investment rate after 1998 in countries that previously had a weak currency. Rubble is not only the currency in Russia but also the family name of Barnie and Betty – the neighbors of Flinstones. Coin [remove] 22; Object type. [36] Notes are issued in €500, €200, €100, €50, €20, €10, €5. The General Awareness section is a part of almost all major Government exams and scoring marks in this section is the easiest since no calculations and solutions are required. The euro thus became the successor to the European Currency Unit (ECU). The notes and coins for the old currencies, however, continued to be used as legal tender until new euro notes and coins were introduced on 1 January 2002. [81] However, a meta-analysis of all available studies suggests that the prevalence of positive estimates is caused by publication bias and that the underlying effect may be negligible. [53], The crisis continued with S&P downgrading the credit rating of nine euro-area countries, including France, then downgrading the entire European Financial Stability Facility (EFSF) fund.[54]. The data comes from the International Standards Organisation (ISO) and their listing of 249 entities/countries in the ISO 4217 Standard. All Eurozone states are required to adopt the Euro as their primary currency except for Denmark and United Kingdom. The matter is, that some of them don't have their own money and officially use the foreign currency. [14] On 28 July 2009, São Tomé and Príncipe signed an agreement with Portugal which will eventually tie its currency to the euro. In Community legislative acts the plural forms of euro and cent are spelled without the s, notwithstanding normal English usage. Euro coins from any member state may be freely used in any nation that has adopted the euro. In late 2009, the euro became immersed in the European sovereign-debt crisis, which led to the creation of the European Financial Stability Facility as well as other reforms aimed at stabilising and strengthening the currency. [34], Commemorative coins with €2 face value have been issued with changes to the design of the national side of the coin. Some evidence of this has been observed in specific eurozone markets. [115], Currency of most countries in the European Union, This article is about the currency. For other uses, see, "EUR" and "Euros" redirect here. The areas the use the euro as currency are in an economic and monetary union called the eurozone. [88], The introduction of the euro has led to extensive discussion about its possible effect on inflation. EU law is suspended in Northern Cyprus, and the Turkish Cypriot government which uses the Turkish lira are not recognised as the legitimate government of the region. In general, those in Europe who own large amounts of euros are served by high stability and low inflation. The ECB and the national central banks of all EU countries, including those who operate an independent currency, are part of the European System of Central Banks. [69] However the Greek government-debt crisis led to former British Foreign Secretary Jack Straw claiming the eurozone could not last in its current form. [47][48] Greece was most acutely affected, but fellow Eurozone members Cyprus, Ireland, Italy, Portugal, and Spain were also significantly affected. EU is the official user of the Euro currency. Source(s): The local money used in Germany is Euro. Akrotiri and Dhekelia / European Euro [ € ] 3. Each currency symbol is presented first as a graphic, then in two "Unicode-friendly" fonts: Code2000 and Arial Unicode MS. There are nine currencies of the European Union as of 2020[update] used officially by member states. There are two models, both proposed by Robert Mundell: the stationary expectations model and the international risk sharing model. [23] The euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1 (US$1.1743). The European Commission also specified a euro logo with exact proportions and foreground and background colour tones. 0 0. The other 92% of euro banknotes are issued by the NCBs in proportion to their respective shares of the ECB capital key,[26] calculated using national share of European Union (EU) population and national share of EU GDP, equally weighted.[27]. The 1992 Maastricht Treaty obliges most EU member states to adopt the euro upon meeting certain monetary and budgetary convergence criteria, although not all states have done so. A single currency offers many advantages: it The two countries legally opted out of the EU treaties. Several studies failed to find any evidence of convergence following the introduction of the euro after a phase of convergence in the early 1990s. Currency name generator . Current and historical exchange rates against 32 other currencies (European Central Bank): This page was last edited on 8 January 2021, at 16:50. [103] A possible reason for the divergence between the different studies is that the processes of convergence may not have been linear, slowing down substantially between 2000 and 2003, and resurfacing after 2003 as suggested by a recent study (2009). Below, you’ll find a table of the countries in the eurozone, including the name of the country’s currency before it adopted the euro and the date that each country joined the eurozone. They could not be set earlier, because the ECU depended on the closing exchange rate of the non-euro currencies (principally the pound sterling) that day. Since 1 January 2002, the national central banks (NCBs) and the ECB have issued euro banknotes on a joint basis. For other uses, see, Payments clearing, electronic funds transfer, Only the European part of the country is part of the European Union and uses the euro. These liabilities carry interest at the main refinancing rate of the ECB. 1 decade ago. All common sides were designed by Luc Luycx. The euro thus became the successor to the European Currency Unit (ECU). However, although transaction costs were reduced, some studies have shown that risk aversion has increased during the last 40 years in the Eurozone. A list of all currencies, current and historic.The local name of the currency is used in this list, with the adjectival form of the country or region. Except for the one state with an opt out, all current and future members of the EU are obliged to adopt the Euro as their currency, thus replacing their current ones. [24] While the euro dropped subsequently to US$0.83 within two years (26 October 2000), it has traded above the U.S. dollar since the end of 2002, peaking at US$1.60 on 18 July 2008 and since then returning near to its original issue rate. 0 0. just me. But this is possible only if a candidate is completely prepared. The currency was introduced in non-physical form (traveller's cheques, electronic transfers, banking, etc.) This drive fall of employment and output in the exports sector and fall of trade and current account balances. The share of the euro as a reserve currency increased from 18% in 1999 to 27% in 2008. [83] Furthermore, older studies accounting for time trend reflecting general cohesion policies in Europe that started before, and continue after implementing the common currency find no effect on trade. A credible commitment to low levels of inflation and a stable debt reduces the risk that the value of the debt will be eroded by higher levels of inflation or default in the future, allowing debt to be issued at a lower nominal interest rate. The circulation of banknotes and coins is highest in the world, has surpassed the U.S.dollar as of 2018, with over €1.2 trillion. As of December 2019[update], with more than €1.3 trillion in circulation, the euro has one of the highest combined values of banknotes and coins in circulation in the world.[21][22]. For consumers, banks in the eurozone must charge the same for intra-member cross-border transactions as purely domestic transactions for electronic payments (e.g., credit cards, debit cards and cash machine withdrawals). In total, as of 2013[update], 182 million people in Africa use a currency pegged to the euro, 27 million people outside the eurozone in Europe, and another 545,000 people on Pacific islands.[58]. [84][85] These results suggest that other policies aimed at European integration might be the source of observed increase in trade. Following the U.S. financial crisis in 2008, fears of a sovereign debt crisis developed in 2009 among investors concerning some European states, with the situation becoming particularly tense in early 2010. Country or Territory / Currency [Currency Symbols] 1. To participate in the currency, member states are meant to meet strict criteria, such as a budget deficit of less than 3% of their GDP, a debt ratio of less than 60% of GDP (both of which were ultimately widely flouted after introduction), low inflation, and interest rates close to the EU average. Official documents and legislation refer to the euro as "the single currency". Outside the EU, the euro is also the sole currency of Montenegro and Kosovo and several European microstates (Andorra, Monaco, San Marino and the Vatican City) as well as in five overseas territories of EU members that are not themselves part of the EU (Saint Barthélemy, Saint Martin, Saint Pierre and Miquelon, the French Southern and Antarctic Lands and Akrotiri and Dhekelia). Beginning on 1 January 1999, all bonds and other forms of government debt by eurozone nations were denominated … The euro inherited and built on the status of the Deutsche Mark as the second most important reserve currency. The Dollar As Leading Reserve Currency", "There Are Only Two Real Threats To The US Dollar's Status As The International Reserve Currency", "Madrid European Council (12/95): Conclusions", "Spelling of the words "euro" and "cent" in official Community languages as used in Community Legislative acts", "English Style Guide: A handbook for authors and translators in the European Commission", "Interinstitutional style guide, 7.3.3. [23] Belgian Esperantist Germain Pirlot, a former teacher of French and history is credited with naming the new currency by sending a letter to then President of the European Commission, Jacques Santer, suggesting the name "euro" on 4 August 1995.[46]. The earliest form of the Danish Krone can be traced back to 1619. The rates were determined by the Council of the European Union,[note 8] based on a recommendation from the European Commission based on the market rates on 31 December 1998. [3] Each banknote has its own colour and is dedicated to an artistic period of European architecture. In the short term, there was a widespread impression in the population of the eurozone that the introduction of the euro had led to an increase in prices, but this impression was not confirmed by general indices of inflation and other studies. This group of states is known as the eurozone or euro area and includes about 343 million citizens as of 2019[update]. [65] In contrast to Greenspan's 2007 assessment, the euro's increase in the share of the worldwide currency reserve basket has slowed considerably since 2007 and since the beginning of the worldwide credit crunch related recession and European sovereign-debt crisis.[63]. [42], A special euro currency sign (€) was designed after a public survey had narrowed the original ten proposals down to two. [73], Another effect of the common European currency is that differences in prices—in particular in price levels—should decrease because of the law of one price. Updated list of currency names. Unfortunately, there is also a cost in structurally keeping inflation lower than in the United States, UK, and China. [93] These reductions in market risk "were concentrated in firms domiciled in the eurozone and in non-euro firms with a high fraction of foreign sales or assets in Europe". [citation needed] The 1-, 2- and 5-cent coins, however, keep their old design, showing a geographical map of Europe with the 15 member states of 2002 raised somewhat above the rest of the map. For example, see European Commission, Directorate General for Translation: English Style Guide section 22.9, Österreichische Banknoten- und Sicherheitsdruck GmbH, Banco de Portugal – Imprensa Nacional / Casa da Moeda, Central Bank and Financial Services Authority of Ireland, Oesterreichische Banknoten- und Sicherheitsdruck GmbH, Koninklijke Munt van België/Monnaie Royale de Belgique, linguistic plurality in the European Union, Learn how and when to remove this template message, International status and usage of the euro, "Council Regulation (EC) No 1103/97 of 17 June 1997 on certain provisions relating to the introduction of the euro", "ECB Statistical Data Warehouse, Reports>ECB/Eurosystem policy>Banknotes and coins statistics>1.Euro banknotes>1.1 Quantities", "Italy to stop producing 1- and 2-cent coins", "Monetary Agreement between the European Union and the Principality of Andorra", "By monetary agreement between France (acting for the EC) and Monaco", "By monetary agreement between Italy (acting for the EC) and San Marino", "By monetary agreement between Italy (acting for the EC) and Vatican City", "By the third protocol to the Cyprus adhesion Treaty to EU and British local ordinance", "By UNMIK administration direction 1999/2", "In Zimbabwe there are nine currencies, amongst others the euro and the US dollar", "Currently, the South African rand, Botswana pula, pound sterling, euro, and the United States dollar are all in use", "Insight: North Korean economy surrenders to foreign currency invasion", "Interview – Governor of the National Bank of Macedonia – Dimitar Bogov", "Foreign exchange turnover in April 2013: preliminary global results", "Compositional Analysis of Foreign Currency Reserves in the 1999–2007 Period. All circulating coins have a common side showing the denomination or value, and a map in the background. Exchange rate is the value of one currency for the purpose of conversion to another. With the exception of Bosnia, Bulgaria, North Macedonia (which had pegged their currencies against the Deutsche Mark) and Cape Verde (formerly pegged to the Portuguese escudo), all of these non-EU countries had a currency peg to the French Franc before pegging their currencies to the euro. 18 of the 27 member states of the European Union have adopted this currency. The Euro Notes: The German currency notes are made up of 5, 10, 20, 50, 100, 200, 500. Replaced alongside French franc with euro, Replaced alongside Italian lira with euro, widely used by other states outside the EU, "Gross domestic product at market prices", UK call for ‘multicurrency’ EU triggers ECB alarm, What a fair relationship between ‘euro ins’ and ‘euro outs’ could look like, Economic and Monetary Union of the European Union, European Financial Stabilisation Mechanism, Economic and Financial Affairs Commissioner,, Articles containing potentially dated statements from 2020, All articles containing potentially dated statements, Pages using collapsible list with both background and text-align in titlestyle, Creative Commons Attribution-ShareAlike License, This page was last edited on 3 January 2021, at 21:15. [39], Capital within the EU may be transferred in any amount from one state to another. Other currencies of the European Union are the British pound, Danish Krone, Swiss Franc, and the Swedish Krona. The procedure used to fix the conversion rate between the Greek drachma and the euro was different since the euro by then was already two years old. legacy documentation 22; image 4; Collection place. The name translates to “Danish Crown” in English. The euro is managed and administered by the Frankfurt-based European Central Bank (ECB) and the Eurosystem (composed of the central banks of the eurozone countries). The European Commission then chose the design created by the Belgian Alain Billiet. Currency – the three-digit alphabetic code for the currency established by the ISO 4217 standard.Alphabetic codes are used in international banking, trading and as shorthands with money amounts. Aland Islands (Finland) / European … Despite pressure due to the European sovereign-debt crisis the euro remained stable. When wages become too high compared to productivity in exports sector then these exports become more expensive and they are crowded out from the market within a country and abroad. EUR/GBP currency pair is sometimes called Chunnel which is an abbreviation of the Channel Tunnel that joins the channel between Britain and France (Europe). The euro (symbol €) is the single currency for 19 EU member countries, introduced in 2002 after more than 40 years of treaties, negotiations, and preparation. 1 0. In 1999, the European Union took a large step toward a unified Europe. [67] The Maltese scudo itself is pegged to the euro and is only recognised as legal tender within the Order. [104], A study suggests that the introduction of the euro has had a positive effect on the amount of tourist travel within the EMU, with an increase of 6.5%.[105]. The euro is the sole currency of 19 EU member states: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Even after the old currencies ceased to be legal tender, they continued to be accepted by national central banks for periods ranging from several years to indefinitely (the latter for Austria, Germany, Ireland, Estonia and Latvia in banknotes and coins, and for Belgium, Luxembourg, Slovenia and Slovakia in banknotes only). The German currency code is EUR. The euro (symbol: €; code: EUR) is the official currency of 19 of the 27 member states of the European Union. Many national and corporate bonds denominated in euro are significantly more liquid and have lower interest rates than was historically the case when denominated in national currencies. John Lanchester, writing for The New Yorker, explains it: The guiding principle of the currency, which opened for business in 1999, were supposed to be a set of rules to limit a country's annual deficit to three per cent of gross domestic product, and the total accumulated debt to sixty per cent of G.D.P. According to a study on this question, it has "significantly reshaped the European financial system, especially with respect to the securities markets [...] However, the real and policy barriers to integration in the retail and corporate banking sectors remain significant, even if the wholesale end of banking has been largely integrated. Columns include the country (or entity), the name of the currency used in that country and the alphabetical three-letter currency code. Nevertheless, the euro does circulate widely. Currency rates are representative of the Bloomberg Generic Composite rate (BGN), a representation based on indicative rates only contributed by market participants. Europe Currency Name. In economics, an optimum currency area, or region (OCA or OCR), is a geographical region in which it would maximise economic efficiency to have the entire region share a single currency. Country, capital and currency is one of the most important topics in terms of Static GK for the various Government exams conducted in the country.. It is the currency used by the institutions of the European Union and in the failed treaty on a European Constitution it was to be included with the symbols of Europe as the formal currency of the European Union. Physical euro coins and banknotes entered into circulation on 1 January 2002, making it the day-to-day operating currency of its original members, and by March 2002 it had completely replaced the former currencies. The 12 states officially began circulating the euro on January 1, 2002, as the legal tender. Dependencies and unrecognized countries don’t have their own currency and officially use the foreign currency symbols also listed here. The euro is the second-most widely held reserve currency after the U.S. dollar. The official date on which the national currencies ceased to be legal tender varied from member state to member state. The euro is the result of the European Union's project for economic and monetary union that came fully into being on 1 January 2002 and it is now the currency used by the majority of the European Union's member states, with all but Denmark bound to adopt it. The name euro was officially adopted on 16 December 1995 in Madrid. The case of the euro", "European Central Bank, Convergence Report", European Commission Directorate-General for Translation – English Style Guide, European Central Bank – Euro Exchange Rates, Economic and Monetary Union of the European Union, European Financial Stabilisation Mechanism, European Coal and Steel Community (1951–2002), European Economic Community (1958–1993/2009), Mechanism for Cooperation and Verification, Cities with more than 100,000 inhabitants, Largest cities by population within city limits, Saint Helena, Ascension and Tristan da Cunha, South Georgia and the South Sandwich Islands,, Currencies of the Commonwealth of Nations, Short description is different from Wikidata, Wikipedia indefinitely move-protected pages, Articles containing Bulgarian-language text, Articles containing Hungarian-language text, Articles containing Latvian-language text, Articles containing Lithuanian-language text, Articles containing Maltese-language text, Articles containing Slovene-language text, Pages using collapsible list with both background and text-align in titlestyle, Articles containing potentially dated statements from 2019, All articles containing potentially dated statements, Articles containing potentially dated statements from December 2019, Articles with unsourced statements from November 2019, Articles needing additional references from December 2017, All articles needing additional references, Articles containing potentially dated statements from 2018, Articles containing potentially dated statements from 2013, Pages using Sister project links with default search, Creative Commons Attribution-ShareAlike License.