Eruo (EUR) Profile

What countries are using the euro currency?

The euro is the second largest reserve currency and the second most traded currency in the world.

The euro is the official currency of the eurozone, which consists of 17 of the 27 member states of the European Union. These 17 members which adopted the euro are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.

The ten countries, which are EU countries but not using the euro as their official currencies, are Bulgaria, the Czech Republic, Denmark, Hungary, Latvia, Lithuania, Poland, Romania, Sweden, and the United Kingdom.

Outside the EU, Monaco, San Marino and Vatican started to use the euro as their currency since 2002. They signed a formal agreement with the EU and acquired the right to mint euro coins with their own designs on the national side. Others, like Andorra, Kosovo, and Montenegro have adopted the euro unilaterally. Some overseas territories of EU members like Mayotte, Clipperton Island, French Southern and Antarctic Lands, Saint Pierre and Miquelon use the euro while they themselves are not part of the EU. On the other hand, UK Sovereign Base areas (Akrotiri and Dhekelia) are the only areas under EU member of British sovereignty but use the euro.

When did the euro currency started to be used?

The euro was established in 1999. The ERM (Exchange Rate Mechanism) was a monetary system established in 1979, which was first participated in by eight countries: Germany, France, Italy, Netherlands, Belgium, Luxembourg, Denmark, and Ireland. The purpose of ERM was to reduce exchange rate variability and achieve monetary stability among

Euro coins and banknotes

All Euro Coins have a common side (face side) showing the Latin alphabet version of euro, the value written by Arabic numerals, and a map of the EU. The national side (backside) shows the image specifically chosen by the issuing country’s bank. Euro Coins from any member state may be freely used in eurozone countries.

Euro banknotes have common designs on both sides. The front features windows or gateways while the back features bridges. Seven banknotes are issued in €500, €200, €100, €50, €20, €10, €5 whose sizes are different according to Euro Banknotes denomination. The €5 euro banknote is the smallest size and the €500 banknote is the biggest size. Each banknote has its own color, which dedicates to an artistic period of European architecture.

Euro and the European Union (EU)

The euro is the currency of the eurozone and used by the seven Institutions of the European Union (EU). The eurozone, officially called the euro area, is an economic and monetary union (EMU) of 17 European Union (EU) member states that have adopted the euro as their official currency. It was established in 1999. The European Union (EU) is an economic and political union. It traces back to 1951, the creation of the European Coal and Steel Community (ECSC) and the following treaties of the European Economic Community (EEC) established in 1958. The European Union (EU) has been expanded from the six founding members of Belgium, France, West Germany, Italy, Luxembourg, Netherlands to 27 member states by 2007.

Euro and the currencies pegged to the euro

The euro is seen as a stable currency. Currently, there are several currencies pegged to the euro, some are at par while some with fluctuation bands around a central rate. The three countries, Denmark, Latvia, Lithuania, are the member states of the EU. So their currencies of Danish krone (code: DKK), Latvian lats (code: LVL), Lithuanian litas (code: LTL) are part of the European Exchange Rate Mechanism (ERM)-II and could have a fluctuation band of ±15%, however with a de facto tighter fluctuation band, such as 0.5% or 1%.