Outside the eurozone, a total of 22 countries and territories that do not belong to the EU have currencies that are directly pegged to the euro including 14 countries in mainland Africa (CFA franc), two African island countries (Comorian franc and Cape Verdean escudo), three French Pacific territories (CFP franc) and three Balkan countries, Bosnia and Herzegovina (Bosnia and Herzegovina convertible mark), Bulgaria (Bulgarian lev) and North Macedonia (Macedonian denar). On 28 July 2009, São Tomé and Príncipe signed an agreement with Portugal which will eventually tie its currency to the euro. Additionally, the Moroccan dirham is tied to a basket of currencies, including the euro and the US dollar, with the euro given the highest weighting.
Currencies pegged to the euro
Euro
Euro | Currencies pegged to the euro
CFA franc, Comorian franc. Cape Verdean escudo, Bulgarian lev) CFA franc, Comorian franc, Cape Verdean escudo, CFP franc, Bosnia and Herzegovina convertible mark, Bulgarian lev and Macedonian denar. Comorian franc, CFA franc, Bulgarian lev, Macedonian denar, among others. Sorry. I cannot find the answer based on the context.
when did the euro come out in spain
user
2002
assistant
what is this ?
user
The euro (symbol: €; code: EUR) is the official currency of 19 of the member states of the European Union.
assistant
are there any inflation risk associated with it ?
user
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.
assistant
what are its linguistic issues ?
user
Bulgaria has negotiated an exception; "euro" in the Bulgarian Cyrillic alphabet is spelled as eвро and not eуро in all official documents. In the Greek script the term ευρώ (evró) is used
assistant
are its exchange rates flexible ?
user
Yes - 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.
assistant
what are its direct uses ?
user
It has been used as a trading currency in Cuba since 1998, Syria since 2006, and Venezuela since 2018.
assistant
where is this country located ?
user
Sorry. I cannot find the answer based on the context.
assistant
where is this currency used ?
user
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
assistant
where is the first country located ?
user
Sorry. I cannot find the answer based on the context.
assistant
name some currencies pegged to this currency ?
user
The Danish krone, Croatian kuna and Bulgarian lev are pegged due to their participation in the ERM II.
Euro | Currencies pegged to the euro
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. 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. Within the EU several currencies are pegged to the euro, mostly as a precondition to joining the eurozone.
Euro | Currencies pegged to the euro
Outside the eurozone, a total of 22 countries and territories that do not belong to the EU have currencies that are directly pegged to the euro including 14 countries in mainland Africa (CFA franc), two African island countries (Comorian franc and Cape Verdean escudo), three French Pacific territories (CFP franc) and three Balkan countries, Bosnia and Herzegovina (Bosnia and Herzegovina convertible mark), Bulgaria (Bulgarian lev) and North Macedonia (Macedonian denar). On 28 July 2009, São Tomé and Príncipe signed an agreement with Portugal which will eventually tie its currency to the euro. Additionally, the Moroccan dirham is tied to a basket of currencies, including the euro and the US dollar, with the euro given the highest weighting.
Euro | Currencies pegged to the euro
Under this system, national currencies were "pegged" against the US dollar which itself was now convertible into gold. This was done to promote freer world trade in response to a sharp decline in imports and exports after the 1930s financial crises and World War 2 (WW2). As a result, national governments had raised their barriers to trade in an attempt to boost their domestic performance, causing major declines in world trade.
Eurocurrency | Background Information
This was not so much a peg, as they were merely limiting its highest value and not its lowest. The Bulgarian lev is pegged to the euro through a currency board. As part of ERM II, the currencies have a fluctuation band of ±15%. Denmark, however, has committed to a tighter fluctuation band of 2.25%.
International status and usage of the euro | Pegged currencies
In some of these countries, there is a fixed exchange rate between the national currency and the euro and in this case the currency is actually a submultiple of the euro. In other countries, the national currency's value fluctuates within a band (generally 15%) around a set rate. Currencies pegged to the euro include the currencies of Bulgaria, Bosnia and Herzegovina and Cape Verde. Denmark has a foreign exchange band tied to the euro.
Economy of Europe | Currency and central banks
Yellow background means a given currency is pegged to another currency (details).
List of circulating currencies | List of circulating currencies by state or territory
Currently there are several currencies pegged to the euro, some with fluctuation bands around a central rate and others with no fluctuations allowed around the central rate. This can be seen as a safety measure, especially for currencies of areas with weak economies. The euro is seen as a stable currency, i.e., there are no dramatic appreciations or depreciations of its value that might suddenly damage the economy or harm trade. Thus it provides security to traders and people holding that currency. In 2011 the Swiss franc was rapidly appreciating against the euro, harming its exports to the eurozone. In response, Switzerland implemented a cap to the Swiss franc's value.
International status and usage of the euro | Pegged currencies
This draft was based on a system where all participating countries’ currencies were already fully convertible, and when the Bretton Woods system collapsed, there were no central currency to peg the currencies on and therefore the idea for monetary integration was postponed. The first step toward a more integrated monetary system in Europe was the Basel agreement which created the European Currency Snake. The Smithsonian Agreement was an international agreement outside the EU framework which provided a new dollar standard to which the EEC currencies’ exchange rates were pegged to and where the European currency snake could fluctuate within. The currencies were though still allowed to fluctuate within 2.25% of the new dollar standard.
Denmark and the euro | European Monetary System and pre-euro monetary co-operation
The euro inherited its status as a major reserve currency from the German mark (DM) and its contribution to official reserves has increased as banks seek to diversify their reserves and trade in the eurozone expands. As with the dollar, some of the world's currencies are pegged against the euro. They are usually Eastern European currencies like the Bulgarian lev, plus several west African currencies like the Cape Verdean escudo and the CFA franc. Other European countries, while not being EU members, have adopted the euro due to currency unions with member states, or by unilaterally superseding their own currencies: Andorra, Monaco, Kosovo, Montenegro, San Marino, and Vatican City.
World currency | Euro
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.
List of currencies | Introduction
This is a list of central banks and currencies of Europe .
Central banks and currencies of Europe | Introduction
Outside Europe, a number of special territories of EU members also use the euro as their currency. Additionally, over 200 million people worldwide use currencies pegged to the euro. The euro is the second-largest reserve currency as well as the second-most traded currency in the world after the United States dollar. , 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.
Euro | Introduction
The following are official and unofficial currencies used within the borders of the 27 EU Member states:
Currencies of the European Union | Current currencies
Due to differences in national conventions for rounding and significant digits, all conversion between the national currencies had to be carried out using the process of triangulation via the euro.
History of the euro | Second stage
A number of active currencies do not have an ISO 4217 code, because they may be: (1) a minor currency pegged at par (1:1) to a larger currency, even if independently regulated, (2) a currency only used for commemorative banknotes or coins, or (3) a currency of an unrecognized or partially recognized state. These currencies include: See for a list of all currently pegged currencies.
ISO 4217 | Currencies without ISO 4217 currency codes
The currency was then pegged against the German D-mark.
Denmark and the euro | European Monetary System and pre-euro monetary co-operation
These states had all previously used one of the eurozone currencies replaced by the euro, or a currency pegged to one of them. These states are not members of the eurozone and do not get a seat in the European Central Bank (ECB) or the Eurogroup. As part of the EU treaty, all of the EU Member States are obliged to adhere to the Stability and Growth Pact (SGP), which serves as a framework to ensure price stability and fiscal responsibility, has adopted identical limits for governments budget deficit and debt as the convergence criteria. Due to the fact that several countries did not exercise a sufficient level of fiscal responsibility during the first 10 years of the euro's lifetime, two major SGP reforms were recently introduced.
Euro convergence criteria | Introduction
Currently, the members of the Eurozone include Austria, Germany, Luxembourg, Slovakia, and Slovenia. Croatia, the Czech Republic, Hungary and Poland use their currencies (Croatian kuna, Czech koruna, Hungarian forint, Polish złoty), but are obliged to adopt the Euro. Switzerland uses its own currency – Swiss franc, Serbia too (Serbian dinar), as well as Romania (Romanian leu).
Central Europe | Currencies
Then, on 3 May 1998, at the European Council in Brussels, the 11 initial countries that would participate in the third stage from 1 January 1999 were selected. To participate in the new currency, member states had 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, low inflation, and interest rates close to the EU average. Greece failed to meet the criteria and was excluded from participating on 1 January 1999. On 1 June 1998 the European Central Bank succeeded the European Monetary Institute.
History of the euro | Second stage
The many British overseas territories use a varied assortment of currencies, including the euro, pound, US dollar, NZ dollar, or their own currencies, which may be pegged to one of these.
British Overseas Territories | Currencies
A partial listing of former non-decimal currencies (giving only units of account): In the Eurozone, in the interval between fixing the conversion factors between national currencies and the euro and the introduction of euro coins, the national currencies were non-decimal subdivisions of the euro. Jade - 1 Talent = 8 Bars = 64 Mina(e) = 128 Shekels = 1024 Obols = 4096 Bits = 8192 Koku = 65,536 Quian = 131,072 Siu = 1,048,576 Yen
Non-decimal currency | List
The four main Eurocurrencies are the US dollar, the Euro, the British pound and the Japanese yen; the currencies of the major economies of the world.
Eurocurrency | Currencies
This is a list of proposed currencies. Currencies are listed by their latest significant proposal.
List of proposed currencies | Introduction
The euro is the second-most widely held reserve currency after the U.S. dollar. 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). Afterwards it regained and its exchange rate reached its historical highest point in 2008 (15 July vs U.S. dollar, 23 July vs Japanese yen, 29 December vs Pound sterling). With the advent of the global financial crisis the euro initially fell, to regain later. Despite pressure due to the European sovereign-debt crisis the euro remained stable.
Euro | Against other major currencies
In November 2011 the euro's exchange rate index – measured against currencies of the bloc's major trading partners – was trading almost two percent higher on the year, approximately at the same level as it was before the crisis kicked off in 2007.
Euro | Against other major currencies
The euro (symbol: €; code: EUR) is the official currency of 19 of the member states of the European Union. This group of states is known as the eurozone or euro area and includes about 343 million citizens . 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. The currency is also used officially by the institutions of the European Union, by four European microstates that are not EU members, the British Overseas Territory of Akrotiri and Dhekelia, as well as unilaterally by Montenegro and Kosovo.
Euro | Introduction
The euro is also used in countries outside the EU. Four states – Andorra, Monaco, San Marino, and Vatican City — have signed formal agreements with the EU to use the euro and issue their own coins. Nevertheless, they are not considered part of the eurozone by the ECB and do not have a seat in the ECB or Euro Group. Several currencies are pegged to the euro, some of them with a fluctuation band and others with an exact rate. For example, the West African and Central African CFA francs are pegged exactly at 655.957 CFA to 1 EUR.
Eurozone | With formal agreement
There are 25 currencies currently used in the 50 countries of Europe, all of which are members of the United Nations, except Vatican City, which is an observer. All "de facto" present currencies in Europe, and an incomplete list of the preceding currency, are listed here. A currency is a medium of exchange, such as money, banknotes, and coins. In Europe, the most commonly used currency is the euro (used by 25 countries); any country entering the European Union (EU) is expected to join the eurozone when they meet the five convergence criteria. Denmark is the only EU which have been granted an exemption from using the euro.
List of currencies in Europe | Introduction
Because hard currencies may be subject to legal restrictions, the desire for transactions in hard currency may lead to a black market. In some cases, a central bank may attempt to increase confidence in the local currency by pegging it against a hard currency, as is this case with the Hong Kong dollar or the Bosnia and Herzegovina convertible mark. This may lead to problems if economic conditions force the government to break the currency peg (and either appreciate or depreciate sharply) as occurred in the 1998–2002 Argentine great depression. In some cases, an economy may choose to abandon local currency altogether and adopt another Fiat money as legal tender in a process known as dollarization.
Hard currency | Mixed currencies
The emergence of Eurocurrency is closely tied to the origins of the Eurodollar as it was the first type of Eurocurrency. Eurodollars began from large quantities of US dollar-denominated deposits being held in European , namely London, banks during the 1950s. Over several decades, economists have produced several explanations of how eurocurrency came about, why it occurred in London , and how London managed to maintain a competitive advantage in the market as eurocurrency expanded globally. Environmental and political factors commonly underpin most theories, influencing the decisions of nations during this period known as the Bretton Woods Era. The Bretton Woods Era spanned from 1944 to 1973 and saw national policymakers, notably those of Britain and the US, agree to a fixed or pegged exchange rate system.
Eurocurrency | Background Information
Together this direct usage of the euro outside the EU affects nearly 3 million people. The euro has been used as a trading currency in Cuba since 1998, Syria since 2006, and Venezuela since 2018. There are also various currencies pegged to the euro (see below). In 2009, Zimbabwe abandoned its local currency and used major currencies instead, including the euro and the United States dollar.
Euro | Direct usage
This table lists various currency redenominations that have occurred, including currency renaming where the conversion rate is 1:1, but excluding decimalisation and joining the eurozone, already listed on the table above.
Redenomination | List of currency redenominations
A new currency, the Jurovalsar, was launched which was pegged to the euro at a rate of 1:1. Enthusiastic attempts to forge official ties with other countries have so far proved disappointing and the Kingdom of Wallachia enjoys no formal diplomatic recognition.
Kingdom of Wallachia | Introduction
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. Due to differences in national conventions for rounding and significant digits, all conversion between the national currencies had to be carried out using the process of triangulation via the euro. The "definitive" values of one euro in terms of the exchange rates at which the currency entered the euro are shown on the right.
Euro | Introduction
This is a list of circulating or proposed fixed exchange rate currencies, with corresponding reference currencies and exchange rates. The yellow background means a given currency is only a proposed currency.
List of circulating fixed exchange rate currencies | Introduction
There are 180 currencies recognized as legal tender in United Nations (UN) member states, UN observer states, partially recognized or unrecognized states, and their dependencies. However excluding the pegged (fixed exchange rate) currencies, there are only 130 currencies (which are independent or pegged to a currency basket). Dependencies and unrecognized states are listed here only if another currency is used in their territory that is different from the one of the state that administers them or has jurisdiction over them.
List of circulating currencies | Introduction
There are some non-EU members who have elected to use the euro as their national currency like Kosovo and Montenegro, either with or without specific agreements with the EU to do so, (those with agreements with the EU may mint their own euro coins). The French overseas territories and departments of Mayotte and Réunion in the Indian Ocean, Guadeloupe and Martinique in the Caribbean and French Guiana in South America all use the euro, among many other islands in the Pacific, Caribbean and indeed around the globe that are ruled directly by European countries. Some countries while maintaining their own national currency have pegged its value to the euro.
Economy of Europe | Currency and central banks
Since Islamic economic jurisprudence prohibits interest, or 'riba,' there was speculation that the future GCC currency would be backed by gold. However, senior figures in the GCC administration have stated that the currency may be linked to the US Dollar or would tie-up with a basket of currencies in which the US Dollar would have a lion's share. The currencies of Saudi Arabia, the UAE, Qatar, Oman, and Bahrain are pegged to the US Dollar. Kuwait's Dinar is pegged to a basket of currencies including the US Dollar and the Euro. Saudi Arabia rejected calls for the International Monetary Fund SDR to be used as a reserve currency.
Khaleeji (currency) | Backing
Currencies: Franc (₣, 1795–2002)Euro (€, 2002–present)"See also French franc."
List of people on banknotes | <a href="France">France</a>
This was for better handling due to different currencies (of different states within the Deutscher Bund) used simultaneously.
Pfennig | Name
The first enlargement of the eurozone, to Greece, took place on 1 January 2001, one year before the euro had physically entered into circulation. The zone's next enlargements were with states that joined the EU in 2004, and then joined the eurozone on 1 January in the mentioned year: Slovenia (2007), Cyprus (2008), Malta (2008), Slovakia (2009), Estonia (2011), Latvia (2014), and Lithuania (2015). All new EU members having joined the bloc after the signing of the Maastricht Treaty in 1992 are obliged to adopt the euro under the terms of their accession treaties. However, the last of the five economic convergence criteria, which need to be complied with in order to qualify for euro adoption, is the exchange rate stability criterion.
European Exchange Rate Mechanism | Historical exchange-rate regimes for EU members
In addition to codes for most active national currencies ISO 4217 provides codes for "supranational" currencies, procedural purposes, and several things which are "similar to" currencies: The use of an initial letter "X" for these purposes is facilitated by the ISO 3166 rule that no official country code beginning with X will ever be assigned. The inclusion of EU (denoting the European Union) in the ISO 3166-1 reserved codes list, allows the euro to be coded as EUR rather than assigned a code beginning with X, even though it is a supranational currency.
ISO 4217 | X currencies
Placement of the sign also varies. Countries have generally continued the style used for their former currencies. In those countries where previous convention was to place the currency sign before the figure, the euro sign is placed in the same position (e.g., €3.50). In those countries where the amount preceded the national currency sign, the euro sign is again placed in that relative position (e.g., 3,50 €). The Commission includes a guideline in its institutional style guide (for its own staff) on the use of the euro sign, stating it should be placed in front of the amount without any space in English, but after the amount in most other languages.
Euro sign | Use
The chart below provides a full summary of all applying exchange-rate regimes for EU members, since the European Monetary System with its Exchange Rate Mechanism and the related new common currency ECU was born on 13 March 1979. The euro replaced the ECU 1:1 at the exchange rate markets, on 1 January 1999. During 1979–1999, the D-Mark functioned as a de facto anchor for the ECU, meaning there was only a minor difference between pegging a currency against ECU and pegging it against the D-mark. The eurozone was born with its first 11 member states on 1 January 1999. The first enlargement of the eurozone, to Greece, took place on 1 January 2001, one year before the euro had physically entered into circulation.
Eurozone | Historical eurozone enlargements and exchange-rate regimes for EU members
An important element of this is participation for a minimum of two years in the European Exchange Rate Mechanism ("ERM II"), in which candidate currencies demonstrate economic convergence by maintaining limited deviation from their target rate against the euro. Nineteen EU member states, including most recently Lithuania, have entered the third stage and have adopted the euro as their currency. All new EU member states must commit to participate in the third stage in their treaties of accession. Only Denmark, whose EU membership predates the introduction of the euro, has a legal opt out from the EU Treaties granting an exemption from this obligation.
Economic and Monetary Union of the European Union | Introduction
However, it did not take on its full powers until the euro was created on 1 January 1999. The bank's first President was Wim Duisenberg, former head of the EMI and the Dutch central bank. The conversion rates between the 11 participating national currencies and the euro were then established. The rates were determined by the Council of the European Union, based on a recommendation from the European Commission based on the market rates on 31 December 1998, so that one ECU would equal one euro. These rates were set by Council Regulation 2866/98 (EC), of 31 December 1998. 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.
History of the euro | Second stage
https://www.xe.com/currencyconverter/convert/?Amount=1&From=RUB&To=EUR
List of European countries by average wage | References
Various currencies; the names derive from the Spanish/Portuguese "real":
Real | Currencies
There are also various smaller eurocurrency markets including the Euroeuro market and the Europound market.
Eurocurrency | Eurocurrency Markets
Currency quotations use the abbreviations for currencies that are prescribed by the International Organization for Standardization (ISO) in standard ISO 4217. The major currencies and their designation in the foreign exchange market are the US dollar (USD), euro (EUR), Japanese yen (JPY), British pound (GBP), Australian dollar (AUD), Canadian dollar (CAD), and the Swiss franc (CHF). As has been mentioned previously, the quotation "EUR/USD 1.2500" (or EURUSD 1.2500) means that one euro is exchanged for 1.2500 US dollars. If the quote changes from EUR/USD 1.2500 (or EURUSD 1.2500) to 1.2510, the euro has increased in relative value by 10 pips (Percentage in point) , because either the dollar buying strength has weakened or the euro has strengthened, or both.
Currency pair | Syntax and quotation
Both are in the top 8 major currencies on Bloomberg. Several countries use currencies which translate as "crown": the Czech koruna, the Norwegian krone, the Danish krone, the Icelandic króna, and the Swedish krona.
List of currencies in Europe | Introduction
They are not always right about the dates : some anticipations were included a Euro/USD exchange rate of 1.75 by the end of the year 2008 and the inevitable default of the United States government on its treasury obligations by the summer of 2009. But they have announced the September 2008 financial breakdown and 2011 revolutions in Maghreb with high precision, among others.
Leap2020 | Introduction
On 13 October 2009, the index rose by 208.45 points, near its historical high point.
Euro Currency Index | Historical overview
Rather, they depend on bills and coins already in circulation.
Montenegro and the euro | Coins
Sweden has also not adopted the Euro, although unlike Denmark, it has not formally opted out; instead, it fails to meet the ERM II (Exchange Rate Mechanism) which results in the non-use of the Euro. For countries which hope to join the eurozone, there are five guidelines that need to be followed, grouped in the Maastricht criteria. The pound sterling, used by the United Kingdom, is rated at fourth on Investopedia's list of the top 8 most tradable currencies, and that it is a "little bit more volatile than the euro". It was ranked just ahead of the Swiss franc, ranked fifth, which is used in Switzerland and Liechtenstein, saying that the set up of the Swiss banking "emphasizes the economic and financial stability policies dictated by the governing board of the SNB".
List of currencies in Europe | Introduction
For example, there were still 19 CSDs operating in the euro area in 2009 and almost 40 in the 27 countries of the EU. This situation is clearly not optimal for a single currency area or for the EU, as it encourages each country's financial market to remain domestically oriented. Investors continue to invest mostly in domestic securities, and as a result, the euro-area financial market cannot fully benefit from the risk diversification and competition benefits that arise from having a single currency. These barriers which provoke a considerable competitive disadvantage for European capital markets were identified in a report by the Giovannini Group.
T2S | Origin
dollars, Chinese yuan, euros, Japanese yen, and British pounds.
Fixed exchange rate system | Basket-of-currencies
There are nine currencies of the European Union used officially by member states. The euro accounts for the majority of the member states with the remainder operating independent monetary policies. Those European Union states that have adopted it are known as the eurozone and share the European Central Bank (ECB). 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.
Currencies of the European Union | Introduction
San Marino and Vatican City had their currencies pegged to the Italian lira (Vatican and Sammarinese lira) and Monaco used the Monegasque franc, which was pegged to the French franc. Between 2010 and 2012, new agreements between the EU and Monaco, San Marino and the Vatican City came into force. A similar agreement was negotiated with Andorra and came into force on 1 April 2012. Andorra did not previously have an official currency. Prior to 2002, it used both the French franc and Spanish peseta as "de facto" legal tender currencies, though they never had an official monetary arrangement with either country, and switched to the euro (without any monetary agreement) when it was introduced on 1 January 2002.
International status and usage of the euro | Sovereign states
Eurocurrency is currency held on deposit outside its home market, i.e., held in banks located outside of the country which issues the currency. For example, a deposit of US dollars held in a bank in London, would be considered eurocurrency, as the US dollar is deposited outside of its home market. The "Euro-" prefix does not refer exclusively to the "euro" currency or the "eurozone", as the term predates the creation of the euro. Instead, it can be applied to any combination of deposits in a foreign bank outside of its home market e.g. a deposit denominated in Japanese yen held in a Swiss bank is a Euroyen deposit.
Eurocurrency | Introduction
Currencies: Second manat ( 1992-2006)"See also Azerbaijani manat."
List of people on banknotes | <a href="Azerbaijan">Azerbaijan</a>
The rules for formulating standard currency pair notations result from accepted priorities attributed to each currency. From its inception in 1999 and as stipulated by the European Central Bank, the euro has first precedence as a base currency. Therefore, all currency pairs involving it should use it as their base, listed first. For example, the US dollar and euro exchange rate is identified as EUR/USD. Although there is no standards-setting body or ruling organization, the established priority ranking of the major currencies is: Historically, this was established by a ranking according to the relative values of the currencies with respect to each other, but the introduction of the euro and other market factors have broken the original price rankings.
Currency pair | Base currency
Coins from those four countries, Italy, and Finland remain exchangeable. 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. All banknotes current on 1 January 2002 would remain valid until at least 2012. In Germany, Deutsche Telekom modified 50,000 pay phones to take Deutsche Mark coins in 2005, at least on a temporary basis. Callers were allowed to use DM coins, at least initially, with the Mark pegged to equal one euro, almost twice the usual rate.
History of the euro | Aftermath
The slash is used in currency exchange rate notation to express exchange rates, the ratio of the first currency in terms of the second. For example, EUR/USD "x" expresses that the value of 1 euro in terms of US dollars is "x". This value may then be multiplied by any number of euros to find its value in dollars.
Slash (punctuation) | Currency
Since the beginning of 2003, Iran has required payment in euros for exports to Asia and Europe. The government opened an Iranian Oil Bourse on the free trade zone on the island of Kish, for the express purpose of trading oil priced in other currencies, including euros.
Petrocurrency | Iran
The eurozone was born with its first 11 Member States on 1 January 1999. The first enlargement of the eurozone, to Greece, took place on 1 January 2001, one year before the euro had physically entered into circulation. Along with the formal eurozone states, the euro also replaced currencies in four microstates, Kosovo, and Montenegro who all used the currencies of one of the member countries. Denmark and Sweden held referendums on joining the euro, but voters voted down the referendums leading both to remain outside. The first enlargements after the euro entered circulation were to states which joined the EU in 2004; namely Slovenia in 2007, followed by Cyprus and Malta in 2008, Slovakia in 2009, Estonia in 2011, Latvia in 2014, and Lithuania in 2015.
Enlargement of the eurozone | Historical enlargements
The minimum wage figures provided are the 2018 figures by The Federation of International Employers. Currency conversions from non-Euro currencies being based on the exchange rates of 2018.
Financial and social rankings of sovereign states in Europe | Minimum wage
In August 2019, pressure on the fixed exchange rate with the U.S. dollar started, creating a parallel rate in the market. The two-rate market is a textbook case of weakening Central Bank reserves that are not able to defend the official exchange rate. Continuous financial pressures driven by unsustainable sovereign debt, high trade deficit and deposit outflows due to loss of confidence are threatening the peg for the first time since 1992.
Lebanese pound | History
The changeover period during which the former currencies' notes and coins were exchanged for those of the euro lasted about two months, from 1 January 2002 until 28 February 2002. 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 after that. Even after the old currencies ceased to be legal tender, they continued to be accepted by national central banks for ten years or more.
200 euro note | The changeover period
It was again popularised during the European sovereign-debt crisis of the late 2000s and expanded in use during this period. In the 1990s to late 2000s, Ireland was not included in this term; the country was still in the midst of its "Celtic Tiger" period, with debt significantly below the Eurozone average and a government surplus as late as 2006. However, taking on the guarantee of banks' debt, the Irish government budget deficit rose to 32% of GDP in 2010, which was the world's largest. Ireland then became associated with the term, replacing Italy or changing the acronym to "PIIGS", with Italy also indicated as the second "I".
PIGS (economics) | Introduction
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. These countries constitute the "eurozone", some 343 million people in total . With all but one (Denmark) of the remaining EU members obliged to join when economic conditions permit, together with future members of the EU, the enlargement of the eurozone is set to continue. 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).
Euro | Direct usage
As it is not an official currency and not circulating, the exchange rate is not realistic. Despite this, the Sahrawi peseta was pegged at par to the Spanish peseta and, when the latter was phased out for the euro, the rate became €1 for 166.386 Pts.
Sahrawi peseta | Introduction
A common currency for most EU member states, the euro, was established electronically in 1999, officially tying all the currencies of each participating nation to each other. The new currency was put into circulation in 2002 and the old currencies were phased out. Only three countries of the then 15 member states decided not to join the euro (the United Kingdom, Denmark and Sweden). In 2004 the EU undertook a major eastward enlargement, admitting 10 new member states (eight of which were former communist states). Two more, Bulgaria and Romania, joined in 2007, establishing a union of 27 nations. The euro has since become the second largest reserve currency and the second most traded currency in the world after the US$.
2000s (decade) | The rise of the euro
There are several error 1-euro coins: Italian types from 2002 without mintmarks; Portuguese coins, also from 2002 with another type of edging (29 stripes instead of 28) and from 2008 with the first type of the common side, officially used until 2007; and the famous Monegasque coin from 2007 without mint marks.
1 euro coin | Error coins
In theory, most of the currencies are allowed to fluctuate as much as 15% from their assigned value. In practice, however, the currency of Denmark deviates very little.
European Exchange Rate Mechanism | Exchange rate bands
The indexation of currency or exchange rate often refers to a country pegging its currency to the US dollar. In other words, such a country’s central bank would buy or sell dollars so as to maintain a stable exchange rate with the dollar. Such a policy has been adopted by several Asian countries including China. If not for the mentioned pegging, the currencies of these countries would rise against the dollar as a result of the US chronic current account deficit with such countries. But, the Asian countries have a vested economic interest in keeping US demand for their exports high.
Indexation | Currency
Currencies: Peseta (₧, 1868–2002)Euro (€, 2002–present)"See also Spanish peseta."
List of people on banknotes | <a href="Spain">Spain</a>
Each country determines the exchange rate regime that will apply to its currency. For example, the currency may be free-floating, pegged (fixed), or a hybrid. If a currency is free-floating, its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand. Exchange rates for such currencies are likely to change almost constantly as quoted on financial markets, mainly by banks, around the world. A movable or adjustable peg system is a system of fixed exchange rates, but with a provision for the revaluation (usually devaluation) of a currency.
Exchange rate | Exchange rate regime
There is a market convention that determines which is the fixed currency and which is the variable currency. For example, in a conversion from EUR to AUD, EUR is the fixed currency, AUD is the variable currency and the exchange rate indicates how many Australian dollars would be paid or received for 1 Euro. Cyprus and Malta, which were quoted as the base to the USD and others, were recently removed from this list when they joined the Eurozone. In some areas of Europe and in the retail market in the United Kingdom, EUR and GBP are reversed so that GBP is quoted as the fixed currency to the euro.
Exchange rate | Quotations
That’s where the pegging of their currency to the US dollar comes in. Often the pegging conducted by central banks is pretty discrete and not disclosed in any formal policy statement. The pegging also can be pretty elastic. A central bank will maintain an exchange rate within a deemed acceptable range instead of at a specific level. Over time, the acceptable range may broaden or narrow depending on such a country’s economy overall reliance on exports to fuel growth. Thus, it is challenging to clearly observe the deindexation of a currency.
Indexation | Currency
The lev has been pegged to the euro since its launch in 1999, at a fixed rate of €1 = BGN 1.95583 through a strictly managed currency board. Prior to that the lev was pegged on par to the German Mark. While the currency board which pegs Bulgaria to the euro has been seen as beneficial to the country fulfilling criteria so quickly, the ECB has pressured Bulgaria to drop it as it did not know how to let a country using a currency board join the euro. The Prime Minister has stated the desire to keep the currency board until the euro was adopted.
Bulgaria and the euro | Joining ERM II
This coupled with geopolitical tensions of the region, caused the Lira-Dollar peg rate to wither. As a response, the central bank resorted to more borrowing and also issued a directive that required all money transfer offices to cash out transfers in the local currency, further exacerbating the dollar crunch.
Economy of Lebanon | Currency Crisis
With the Soviet occupation in September 1944, the lev was pegged to the Soviet ruble at 15 leva = 1 ruble. A series of pegs to the U.S. dollar followed: 120 leva = 1 dollar in October 1945, 286.50 leva in December 1945 and 143.25 leva in March 1947. No coins were issued after 1943; only banknotes were issued until the currency reform of 1952.
Bulgarian lev | First lev (1881–1952)
The changeover period during which the former currencies' notes and coins were exchanged for those of the euro lasted about two months, going from 1 January 2002 until 28 February 2002. 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. Even after the old currencies ceased to be legal tender, they continued to be accepted by national central banks for periods ranging from ten years to forever.
20 euro note | The changeover period
Most traded currencies (from 31 December 1990): Currencies of nearby countries (from 31 December 2010):
Hungarian forint | Historic rates
Manx versions of the euro coins and euro banknotes were designed. While the European Union is not obliged to accept the Manx desire to introduce a special Manx version of the euro, the Isle of Man could arguably introduce a currency pegged to the euro (akin to its situation now vis-à-vis the pound sterling, or the relationship between the euro and the Bulgarian lev). There is no precedent for divergent national versions, beyond customising the national side of euro coins in the same way as other eurozone members.
Manx pound | Manx pound and the euro
United States currency, for instance, is globally referred to as USD. The former currencies include the marks that used formerly in Germany and Finland. The International Monetary Fund uses a different system when referring to national currencies.
Currency | Modern currencies
In 2002, euro banknotes and coins replaced national currencies in 12 of the member states. Since then, the eurozone has increased to encompass 19 countries. The euro currency became the second largest reserve currency in the world. In 2004, the EU saw its biggest enlargement to date when Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia joined the Union.
European Union | Maastricht Treaty (19922007)
For example, the exchange rate of the "renminbi" of the mainland of the People's Republic of China has been based upon a currency band; the European Economic Community's "snake in the tunnel" was a similar concept that failed, but ultimately led to the establishment of the European Exchange Rate Mechanism (ERM) and ultimately the Euro.
Currency band | Introduction
These countries traditionally strike coins with the year of minting rather than the year it was put into circulation.
Euro coins | Initial design
The ERM is based on the concept of fixed currency exchange rate margins, but with exchange rates variable within those margins. This is also known as a semi-pegged system. Before the introduction of the euro, exchange rates were based on the European Currency Unit (ECU), the European unit of account, whose value was determined as a weighted average of the participating currencies. A grid (known as the Parity Grid) of bilateral rates was calculated on the basis of these central rates expressed in ECUs, and currency fluctuations had to be contained within a margin of 2.25% on either side of the bilateral rates (with the exception of the Italian lira, the Spanish peseta, the Portuguese escudo and the pound sterling, which were allowed to fluctuate by ±6%).
European Exchange Rate Mechanism | Intent and operation of the ERM II
Governments often borrow money in a currency in which the demand for debt securities is strong. An advantage of issuing bonds in a currency such as the US dollar, the pound sterling, or the euro is that many investors wish to invest in such bonds. Countries such as the United States, Germany, Italy and France have only issued in their domestic currency (or in the Euro in the case of Euro members). Relatively few investors are willing to invest in currencies that do not have a long track record of stability. A disadvantage for a government issuing bonds in a foreign currency is that there is a risk that it will not be able to obtain the foreign currency to pay the interest or redeem the bonds.
Government debt | Denominated in reserve currencies
Currency: Euro (since 2002)Symbol: €Subdivision: Cent ()Symbol: n/aCurrency Code: EUR"See also Euro coins."
List of people on coins | European Union
Beginning on 1 January 1999, all bonds and other forms of government debt by eurozone nations were denominated in euros. The value of the euro, which started at US$1.1686 on 31 December 1998, rose during its first day of trading, Monday, 4 January 1999, closing at approximately US$1.18. It was rapidly taken up and dealers were surprised by the speed at which it replaced the national currencies. Trading in the Deutsche Mark was expected to continue in parallel but vanished as soon as the markets opened. However, by the end of 1999 the euro had dropped to parity with the dollar leading to emergency action from the G7 to support the euro in 2001.
History of the euro | Launch
Euro coins from any member state may be freely used in any nation that has adopted the euro. The coins are issued in denominations of €2, €1, 50c, 20c, 10c, 5c, 2c, and 1c. To avoid the use of the two smallest coins, some cash transactions are rounded to the nearest five cents in the Netherlands and Ireland (by voluntary agreement) and in Finland (by law). This practice is discouraged by the commission, as is the practice of certain shops of refusing to accept high-value euro notes.
Euro | Coins and banknotes
Euro (sign: €; code: EUR) is the official currency of the eurozone. Euro may also refer to:
Euro (disambiguation) | Introduction
The changeover period during which the former currencies' notes and coins were exchanged for those of the euro lasted about two months, from 1 January 2002 until 28 February 2002. 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. Even after the old currencies ceased to be legal tender, they continue to be accepted by national central banks for periods ranging from ten years to forever.
50 euro note | The changeover period
Currencies: Gulden (ƒ, 1817–2002)Euro (€, 2002–present)"See also Banknotes of the Dutch gulden and Dutch gulden".
List of people on banknotes | <a href="Netherlands">Netherlands</a>
The changeover period during which the former currencies' notes and coins were exchanged for those of the euro lasted about two months, going from 1 January 2002 until 28 February 2002. 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. Even after the old currencies ceased to be legal tender, they continued to be accepted by national central banks for periods ranging from ten years to forever.
100 euro note | The changeover period