archaeology [remove] 42; Media available. The euro is the second-most widely held reserve currency after the U.S. dollar. [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. EMU involves coordinating economic and fiscal policies, a common monetary policy, and a common currency, the euro. A single currency offers many advantages: it [91] It has also been suggested that the jump in small prices may be because prior to the introduction, retailers made fewer upward adjustments and waited for the introduction of the euro to do so.[92]. The euro is also widely used by other states outside the EU. The euro remains underweight as a reserve currency in advanced economies while overweight in emerging and developing economies: according to the International Monetary Fund[63] the total of euros held as a reserve in the world at the end of 2008 was equal to $1.1 trillion or €850 billion, with a share of 22% of all currency reserves in advanced economies, but a total of 31% of all currency reserves in emerging and developing economies. [3] 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. The areas the use the euro as currency are in an economic and monetary union called the eurozone. List of European currencies. The European Commission also specified a euro logo with exact proportions and foreground and background colour tones. Portugal was among the first 11 member states who adopted the euro. 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 January 2007, Slovakia became the 13th state to adopt the euro. archaeology [remove] 22; Media available. After its introduction on 4 January 1999 its exchange rate against the other major currencies fell reaching its lowest exchange rates in 2000 (3 May vs Pound sterling, 25 October vs the U.S. dollar, 26 October vs Japanese yen). The earliest form of the Danish Krone can be traced back to 1619. The name translates to “Danish Crown” in English. As an independent central bank, the ECB has sole authority to set monetary policy. The euro has most specifically stimulated investment in companies that come from countries that previously had weak currencies. Together this direct usage of the euro outside the EU affects nearly 3 million people. 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. Creating the euro was also seen as a way to keep the peace due to the economic integration of the countries. This could result in high unemployment and lower incomes as it was during European sovereign-debt crisis.[78]. 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. 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. But this is possible only if a candidate is completely prepared. 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. The euro is the second-largest reserve currency as well as the second-most traded currency in the world after the United States dollar. As the new currency will almost certainly start mainly in North-Western Europe, it is unlikely to get a Latin name. It was signed in February 1986 in Luxembourg and The … [39], Capital within the EU may be transferred in any amount from one state to another. The Euro is the principal currency of the Eurozone. The euro is the official currency but the Swiss franc is more widely used due to Büsingen am Hochrhein being an exclave surrounded by Switzerland. Euro is the second most held international reserve currency after U.S.dollar with €850 billion as of 2008. 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. Since its introduction, the euro has been the second most widely held international reserve currency after the U.S. dollar. [56][57] In the enduring of this scenario the euro serves as a mean of quantitative primitive accumulation. [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). Fall of output and employment in tradable goods sector may be offset by the growth of non-exports sectors, especially in construction and services. Inspiration for the € symbol itself came from the Greek epsilon (Є)[note 7] – a reference to the cradle of European civilisation – and the first letter of the word Europe, crossed by two parallel lines to 'certify' the stability of the euro. The German currency code is EUR. It was initially adopted by 11 members of the EU on January 1, 1999, before Greece later adopted it two years later. Euro coins from any member state may be freely used in any nation that has adopted the euro. A monetary union means states in that union lose the main mechanism of recovery of their international competitiveness by weakening (depreciating) their currency. 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. ", "The Euro's Trade Effect: A Meta-Analysis", "The Euro and Trade: Is there a Positive Effect? The earliest coins to become non-convertible were the Portuguese escudos, which ceased to have monetary value after 31 December 2002, although banknotes remain exchangeable until 2022. "Spelling of the words "euro" and "cent" in official community languages as used in community legislative acts" (PDF). "[94] Specifically, the euro has significantly decreased the cost of trade in bonds, equity, and banking assets within the eurozone. 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). One of the advantages of the adoption of a common currency is the reduction of the risk associated with changes in currency exchange rates. The dominance of the Euro is clearly observed, now the 27 independent countries and dependent territories use it as the legal tender. 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. [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. Object name. legacy documentation 22; image 4; Collection place. All circulating coins have a common side showing the denomination or value, and a map in the background. While the designs are supposed to be devoid of any identifiable characteristics, the initial designs by Robert Kalina were of specific bridges, including the Rialto and the Pont de Neuilly, and were subsequently rendered more generic; the final designs still bear very close similarities to their specific prototypes; thus they are not truly generic. There are two models, both proposed by Robert Mundell: the stationary expectations model and the international risk sharing model. The Eurosystem participates in the printing, minting and distribution of notes and coins in all member states, and the operation of the eurozone payment systems. This may be because of the inclusion of the Financial crisis of 2007–2008 and ongoing integration within the EU. 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]. The local money used in Germany is Euro. [34], Commemorative coins with €2 face value have been issued with changes to the design of the national side of the coin. [68] However, even before the creation of the single currency, there were concerns over diverging economies. But this is possible only if a candidate is completely prepared. 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). [74], Before the introduction of the euro, some countries had successfully contained inflation, which was then seen as a major economic problem, by establishing largely independent central banks. [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]. [98] This further increased the already high levels of public debt to a level the markets began to consider unsustainable, via increasing government bond interest rates, producing the ongoing European sovereign-debt crisis. Differences in prices can trigger arbitrage, i.e., speculative trade in a commodity across borders purely to exploit the price differential. Beginning on 1 January 1999, all bonds and other forms of government debt by eurozone nations were denominated … 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 Swiss Franc is the only ‘Franc’ currency in Europe still in use today. and "stg." [15][16] The euro, which is divided into 100 cents, is the second-largest and second-most traded currency in the foreign exchange market after the United States dollar.[17]. Evidence from micro data", "Price Convergence in the European Car Market", "Do Prices in the EMU Converge (Non-linearly)? To achieve this a state has to reduce prices, including wages (deflation). [35], The design for the euro banknotes has common designs on both sides. Since 1 January 2002, the national central banks (NCBs) and the ECB have issued euro banknotes on a joint basis. From as early as 1020, Denmark had some form of organized minting in the country. The evidence on the convergence of prices in the eurozone with the introduction of the euro is mixed. Beginning in 2007 or 2008 (depending on the country), the old map was replaced by a map of Europe also showing countries outside the EU like Norway, Ukraine, Belarus, Russia and Turkey. legacy documentation 42; image 41; Collection place. Evidence from ATM Withdrawals", "Fünf Jahre nach der Euro-Bargeldeinführung –War der Euro wirklich ein Teuro? The euro is also the currency used in all the institutions of the EU and other … Outside Europe, a number of special territories of EU members also use the euro as their currency. [95] On a global level, there is evidence that the introduction of the euro has led to an integration in terms of investment in bond portfolios, with eurozone countries lending and borrowing more between each other than with other countries.[96]. EU is the official user of the Euro currency. The matter is, that some of them don't have their own money and officially use the foreign currency. Afghanistan / Afghan Afghani [ ؋] 2. The Euro Coins: 1 Euro is made up of 100 Cents. 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. The euro (symbol: €; code: EUR) is the official currency of 19 of the 27 member states of the European Union. List of European currencies. The European Commission then chose the design created by the Belgian Alain Billiet. 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. 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]. Columns include the country (or entity), the name of the currency used in that country and the alphabetical three-letter currency code. German Cent … All common sides were designed by Luc Luycx. Their exchange rates were locked at fixed rates against each other. [64] Former Federal Reserve Chairman Alan Greenspan gave his opinion in September 2007 that it was "absolutely conceivable that the euro will replace the US dollar as reserve currency, or will be traded as an equally important reserve currency". Other common names for the Euro include Yoyo (Irish English), Leru (Spanish), and Ege (Finnish). While increased liquidity may lower the nominal interest rate on the bond, denominating the bond in a currency with low levels of inflation arguably plays a much larger role. The notes and coins for the old currencies, however, continued to be used as legal tender until new notes and coins were introduced on 1 January 2002 (having been distributed in small amounts in the previous December). Therefore, prices on commonly traded goods are likely to converge, causing inflation in some regions and deflation in others during the transition. 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. Unfortunately, there is also a cost in structurally keeping inflation lower than in the United States, UK, and China. The European Currency Unit was an accounting unit used by the EU, based on the currencies of the member states; it was not a currency in its own right. The official date on which the national currencies ceased to be legal tender varied from member state to member state. The definitive values of one euro in terms of the exchange rates at which the currency entered the euro are shown on the right. [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. [110] However, 15 years after the introduction of the euro, a study found no evidence that it has had a positive influence on a shared sense of European identity (and no evidence that it had a negative effect either). 3 character alphabetic and 3 digit numeric ISO 4217 codes for each country. Europe Currency Name. Each currency symbol is presented first as a graphic, then in two "Unicode-friendly" fonts: Code2000 and Arial Unicode MS. There are various different name styles, so there's plenty to pick from. June 30, 2009", "Will the Euro Eventually Surpass the Dollar As Leading International Reserve Currency? Spikester5 . 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. One such bank was the Bundesbank in Germany; the European Central Bank was modelled on the Bundesbank.[75]. at midnight on 1 January 1999, when the national currencies of participating countries (the eurozone) ceased to exist independently. A 2009 consensus from the studies of the introduction of the euro concluded that it has increased trade within the eurozone by 5% to 10%,[79] although one study suggested an increase of only 3%[80] while another estimated 9 to 14%. 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. These countries constitute the "eurozone", some 343 million people in total as of 2018[update].[58]. The data comes from the International Standards Organisation (ISO) and their listing of 249 entities/countries in the ISO 4217 Standard. [52], According to the Economist Intelligence Unit in 2011, "[I]f the [euro area] is treated as a single entity, its [economic and fiscal] position looks no worse and in some respects, rather better than that of the US or the UK" and the budget deficit for the euro area as a whole is much lower and the euro area's government debt/GDP ratio of 86% in 2010 was about the same level as that of the United States. 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. In 1995, it became the official name of the currency, and the European Council chose the symbol €. "Moreover", they write, "private-sector indebtedness across the euro area as a whole is markedly lower than in the highly leveraged Anglo-Saxon economies". [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]. The Belarusian ruble is pegged to the euro, Russian ruble and US$ in a currency basket. 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. [4][5][6]. The euro is the official currency of the European Monetary Union. The euro is divided into 100 cents (also referred to as euro cents, especially when distinguishing them from other currencies, and referred to as such on the common side of all cent coins). The ECB targets interest rates rather than exchange rates and in general, does not intervene on the foreign exchange rate markets. Over this period, the share held in U.S. dollar fell from 71% to 64% and that held in RMB fell from 6.4% to 3.3%. [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. [note 9]. The Euro Notes: The German currency notes are made up of 5, 10, 20, 50, 100, 200, 500. [84][85] These results suggest that other policies aimed at European integration might be the source of observed increase in trade. 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 monuments looked similar enough to different national monuments to please everyone. [47][48] Greece was most acutely affected, but fellow Eurozone members Cyprus, Ireland, Italy, Portugal, and Spain were also significantly affected. 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. It was a nice idea, but by 2004 the two biggest economies in the euro zone, Germany and France, had broken the rules for three years in a row.[71]. In 2009, Zimbabwe abandoned its local currency and used major currencies instead, including the euro and the United States dollar.[62]. 0 0. The euro thus became the successor to the European Currency Unit (ECU). The. 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 Euro Changeover and Its Effects on Price Transparency and Inflation", "Quarterly Journal of Economics – Abstract", "The geography of asset trade and the euro: Insiders and outsiders", "Redwood: The origins of the euro crisis", "Farewell, Fair-Weather Euro | IP – Global-Edition", "Price setting and inflation dynamics: did EMU matter", "Price convergence in the EMU? 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. by means of Council Regulation 2866/98 (EC) of 31 December 1998. by Council Regulation 1478/2000 (EC) of 19 June 2000, The total sum is 200% because each currency trade always involves a. 57 ] in the ISO 4217 Standard Capital within the EU affects nearly 3 million people in as. Have a common market eurozone ) ceased to be far more liquid and flexible than they were so. 75 ]. [ 58 ]. [ 58 ]. [ 75 ]. [ ]! 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