Hello! In this article, we will try to know few important things about the Euro.
The Euro (symbol: €; code: EUR) is the official currency of 19 of the 27 member states of the European Union. This group of states is known as the eurozone or, officially, the euro area. The euro is divided into 100 cents.
The euro is the second-largest reserve currency as well as the second-most traded currency in the world after the United States dollar.
Facts about the Euro
The euro is the second most important currency in the world
Did you know that the proportion of international payments made in euros and US dollars is roughly equal and the euro is the world’s second favourite currency for borrowing, lending and central bank reserves?
Well, the name euro was officially adopted on 16 December 1995 in Madrid. 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). 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 euro has protected euro area economies from exchange rate volatility
The euro has eliminated the costs of currency movements within the euro area and protected European consumers and businesses from costly swings in currency markets, which in some countries, used to undermine confidence, discourage investment and cause economic instability.
Name and symbol
The name ‘euro’ was agreed at the 1995 European Council meeting in Madrid as part of the preparations for the single currency. The euro symbol € was inspired by the Greek letter epsilon (Є). It also stands for the first letter of the word ‘Europe’ in the Latin alphabet, while the two parallel lines running through the symbol signify stability.
Banknotes
The design of the euro banknotes is based on the different architectural styles that have emerged throughout Europe’s history and have marked its culture. On the front of the banknotes, windows and doorways symbolise the European spirit of openness and cooperation. On the back side of the banknotes, bridges symbolise communication between the people of Europe and between Europe and the rest of the world.
The styles shown the Euro Banknotes are as follows:
€5: Classical
€10: Romanesque
€20: Gothic
€50: Renaissance
€100: Baroque and rococo
€200: 19th century iron & glass architecture
Use in other territories
In addition to the euro area, the euro is also the currency of some non-EU countries like Andorra, Kosovo, Montenegro, Monaco, San Marino, Vatican City.
Other Information
ISO code: EUR
Subunit: Cent
Banknotes: €5,€10,€20,€50,€100,€200,€500
Coins: 1 cent euro coin,2 euro cent coin, 5 euro cent coin, 10 euro cent coin, 20 cent euro coin, 50 euro cent coin,€1,€2
Official website: ecb.europa.eu
Symbol: €
Central bank: European Central Bank
Concerns
Some economists are concerned about the possible dangers of adopting a single currency for a large and diverse area. Because the Eurozone has a single monetary policy (and so a single interest rate), set by the ECB, it cannot be fine-tuned for the economic situation in each individual country. Public investment and fiscal policy in each country is thus the only way in which economic changes can be introduced specific to each region or nation. Eurozone members are experiencing large variations in inflation and unemployment, though not yet great enough to cause significant economic damage.
European Union countries that do not use the Euro
The EU countries that do not use the euro as their currency are as follows
1. Bulgaria. Currency: Bulgarian Lev (1 Bulgarian Lev equals 42.22 Indian Rupee)
2. Croatia. Currency: Croatian Kuna (1 Croatian Kuna equals 10.92 Indian Rupee)
3. Czech Republic. Currency: Czech Koruna (1 Czech Koruna equals 3.38 Indian Rupee)
4. Denmark. Currency: Danish Krone (1 Danish Krone equals 11.10 Indian Rupee)
5. Hungary. Currency: Hungarian Forint (1 Hungarian Forint equals 0.22 Indian Rupee)
6. Poland. Currency: Polish Złoty (1 Polish Złoty equals 17.75 Indian Rupee)
7. Romania. Currency: Romanian Leu (1 Romanian Leu equals 16.71 Indian Rupee)
8. Sweden. Currency: Swedish Krona (1 Swedish Krona equals 8.02 Indian Rupee)
Last Updated on 20/04/2022
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