Other common names for the Euro include Yoyo (Irish English), Leru (Spanish), and Ege (Finnish). The euro is the official currency of the European Monetary Union. 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. Updated list of currency names. 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. 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]. It was initially adopted by 11 members of the EU on January 1, 1999, before Greece later adopted it two years later. There are various different name styles, so there's plenty to pick from. [38] However, both the first and the second series of euro banknotes, including the €500, remain legal tender throughout the euro area. This may be because of the inclusion of the Financial crisis of 2007–2008 and ongoing integration within the EU. Differences in prices can trigger arbitrage, i.e., speculative trade in a commodity across borders purely to exploit the price differential. Since 1 January 2002, the national central banks (NCBs) and the ECB have issued euro banknotes on a joint basis. Within the EU several currencies are pegged to the euro, mostly as a precondition to joining the eurozone. 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. 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. Paduan medal [remove] 42; Object type. Due to the linguistic plurality in the European Union, the Latin alphabet version of euro is used (as opposed to the less common Greek or Cyrillic) and Arabic numerals (other text is used on national sides in national languages, but other text on the common side is avoided). 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. 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). 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. [42], A special euro currency sign (€) was designed after a public survey had narrowed the original ten proposals down to two. [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. 18 of the 27 member states of the European Union have adopted this currency. 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. 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%. 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). Evidence from micro data", "Price Convergence in the European Car Market", "Do Prices in the EMU Converge (Non-linearly)? The abbreviations "ster." [34], Commemorative coins with €2 face value have been issued with changes to the design of the national side of the coin. Those European Union states that have adopted it are known as the eurozone and share the European Central Bank (ECB). [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). 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, https://en.wikipedia.org/w/index.php?title=Currencies_of_the_European_Union&oldid=998106964, 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. A single currency offers many advantages: it The euro accounts for the majority of the member states with the remainder operating independent monetary policies. 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]. But this is possible only if a candidate is completely prepared. [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 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. To avoid the use of the two smallest coins, some cash transactions are rounded to the nearest five cents in the Netherlands and Ireland[31][32] (by voluntary agreement) and in Finland (by law). The euro is the second-largest reserve currency as well as the second-most traded currency in the world after the United States dollar. 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". All circulating coins have a common side showing the denomination or value, and a map in the background. 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). It is the official currency of 19 out of 27 countries of EU and 4 other territories in Europe. The result is that seen from those countries, the euro has become expensive, making European products increasingly expensive for its largest importers; hence export from the eurozone becomes more difficult. [88], The introduction of the euro has led to extensive discussion about its possible effect on inflation. Europe Currency Name. The earliest form of the Danish Krone can be traced back to 1619. Current and historical exchange rates against 32 other currencies (European Central Bank): This page was last edited on 8 January 2021, at 16:50. ", "The Euro's Trade Effect: A Meta-Analysis", "The Euro and Trade: Is there a Positive Effect? In 2009, Zimbabwe abandoned its local currency and used major currencies instead, including the euro and the United States dollar.[62]. 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. Columns include the country (or entity), the name of the currency used in that country and the alphabetical three-letter currency code. and "stg." 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. are sometimes used. 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). [89][90] A study of this paradox found that this was due to an asymmetric effect of the introduction of the euro on prices: while it had no effect on most goods, it had an effect on cheap goods which have seen their price round up after the introduction of the euro. 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%. EU is the official user of the Euro currency. In 1995, it became the official name of the currency, and the European Council chose the symbol €. The dominance of the Euro is clearly observed, now the 27 independent countries and dependent territories use it as the legal tender. Sweden and Denmark have Swedish and Danish crowns, England has the British pound, etc. 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 name euro was officially adopted on 16 December 1995 in Madrid. [115], Currency of most countries in the European Union, This article is about the currency. 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). 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. [77] The need to finance trade deficit weakens currency making exports automatically more attractive in a country and abroad. Totally there are 31 different currencies in circulation within … Aland Islands (Finland) / European … 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. Former member UK had called for the EU treaties to recognise the EU as a "multicurrency union", which sparked concerns about undermining euro adoption in remaining countries. [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. [26] Eurosystem NCBs are required to accept euro banknotes put into circulation by other Eurosystem members and these banknotes are not repatriated. Totally there are 31 different currencies in circulation within Europe. ", "Schaeuble says markets have confidence in euro", "Puzzle over euro's 'mysterious' stability", "Can a common currency foster a shared social identity across different nations? The euro (symbol: €; code: EUR) is the official currency of 19 of the 27 member states of the European Union. Exchange rate is the value of one currency for the purpose of conversion to another. List of European currencies. This currency list is arranged in alphabetical order by country. Note that of the two fonts used above, only Code2000 is complete. An economic and monetary union (EMU) was a recurring ambition for the European Union from the late 1960s onwards. 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 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]. European Commission. The currency name is sometimes abbreviated to just sterling, particularly in the wholesale financial markets, but not when referring to specific amounts; for example, "Payment is accepted in sterling" but never "These cost five sterling". [56][57] In the enduring of this scenario the euro serves as a mean of quantitative primitive accumulation. Source(s): https://shrinkurl.im/a8iW5. [111], The formal titles of the currency are euro for the major unit and cent for the minor (one-hundredth) unit and for official use in most eurozone languages; according to the ECB, all languages should use the same spelling for the nominative singular. The matter is, that some of them don't have their own money and officially use the foreign currency. [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". [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. [41] Credit/debit card charging and ATM withdrawals within the eurozone are also treated as domestic transactions; however paper-based payment orders, like cheques, have not been standardised so these are still domestic-based. Most of Europe is now using a single currency, the euro. Mundell himself advocates the international risk sharing model and thus concludes in favour of the euro. [44], The euro was established by the provisions in the 1992 Maastricht Treaty. Gil-Pareja, Salvador, and Simón Sosvilla-Rivero. Object name. Europe [remove] 42; Italy 42; Northern Italy 42; Padua, Northern Italy 42; Southern Europe 42; Collector. Currently, 17 EU member states have adopted the Euro. The most obvious benefit of adopting a single currency is to remove the cost of exchanging currency, theoretically allowing businesses and individuals to consummate previously unprofitable trades. [68] However, even before the creation of the single currency, there were concerns over diverging economies. Some of these countries had the most serious sovereign financing problems. 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. 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. [47][48] Greece was most acutely affected, but fellow Eurozone members Cyprus, Ireland, Italy, Portugal, and Spain were also significantly affected. [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]. 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. The Danish krone, Croatian kuna and Bulgarian lev are pegged due to their participation in the ERM II. The Belarusian ruble is pegged to the euro, Russian ruble and US$ in a currency basket. The graphic symbol in the first column will always be visible, but the symbols in the other columns may or may not be available, depending on which fonts are installed on your computer. Physical investment seems to have increased by 5% in the eurozone due to the introduction. 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. The study found that consumers based their beliefs on inflation of those cheap goods which are frequently purchased. The central bank in Europe is called the European Central Bank (ECB). Object name. [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]. There are two models, both proposed by Robert Mundell: the stationary expectations model and the international risk sharing model. June 30, 2009", "Will the Euro Eventually Surpass the Dollar As Leading International Reserve Currency? 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. 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). 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. 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. 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. 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