Currency Union

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Dictionary Says

Definition of 'Currency Union'

When two or more groups (usually countries) share a common currency or decide to peg their exchange rates in order to keep the value of their currency at a certain level. One of the main goals of forming a currency union is to synchronize and manage each country's monetary policy.
Also referred to as a "monetary union".
Investopedia Says

Investopedia explains 'Currency Union'

A group of countries (or regions) using a common currency. For example, in 1979, eight European countries created the European Monetary System (EMS). This system consisted of mutually fixed exchange rates between these countries. In 2002, 12 European countries agreed to a common monetary policy, thus forming the European Monetary Union. One reason why countries form these systems is to lower the transaction costs of cross-border trade.
Search results for

'Currency Union'

  • The Banking System: Commercial Banking - Bank Crises And Panics ...

    http://www.investopedia.com/university/banking-system/banking-system8.asp
    ... Making matters worse for Europe, the Eurozone currency union led irresponsible
    governments and financial institutions to borrow excessively. ...

  • Are eurodollars related to the currency called the euro?

    http://www.investopedia.com/ask/answers/06/eurodollars.asp
    Eurodollars have little to do with the official currency of the European Union,
    the euro (EUR). In 1999, the euro was implemented as the official. ...

  • The Euro: What Every Forex Trader Needs To Know

    http://www.investopedia.com/articles/forex/11/euro-what-every-fx-trader-needs-to-know.asp
    ... It is clear now that some countries hid their problems to get into the currency
    union and could not responsibly handle the benefits produced by the union. ...

  • How Forex Speculators Profited From Famous Currency Meltdowns

    http://www.investopedia.com/articles/forex/11/currency-meltdowns-speculative-raids.asp
    ... of 2009 to June of 2010, as many speculators began to predict that the members of
    the European Union would not be able to operate under the same currency. ...

  • When and why did the euro make its debut as a currency?

    http://www.investopedia.com/ask/answers/09/euro-introduction-debut.asp
    On January 1, 1999, the European Union introduced its new currency, the euro.
    Originally, the euro was an overarching currency used for exchange. ...

  • Will The Greek Crisis Affect Your Retirement? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0711/Will-The-Greek-Crisis-Affect-Your-Retirement.aspx
    ... Greece may find that the cost of staying in the currency union is just too high
    and unpalatable for its people and may feel that going back to the drachma, and ...

  • Forex Currencies: The EUR/USD | Investopedia

    http://www.investopedia.com/university/forex-currencies/currencies4.asp
    ... held currency. The currency of the European Union, known as the euro, is
    the world's second most popular currency. Because it is ...

  • Behind The Euro: History And Future

    http://www.investopedia.com/articles/economics/12/Behind-the-euro-history-and-future.asp
    ... Markets. The euro is the commonly accepted currency for 17 of the 27 member states
    of the European Union; these countries combine to create the eurozone. ...

  • Forex Currencies: Conclusion | Investopedia

    http://www.investopedia.com/university/forex-currencies/currencies11.asp
    ... While the US dollar is the currency of a single country, the euro is the single
    currency of 16 European countries within the European Union, collectively known ...

  • Diversify with Currency

    http://stocks.investopedia.com/stock-analysis/2009/Diversify-with-Currency-GRN-FXE-EU-CYB-CEW-DBV-SLV0520.aspx
    ... This ETF allows investors to participate in the currency of 16 countries making
    up the European Union, which is the second-most traded currency worldwide ...

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