Euro
 |
Definition of 'Euro'The official currency of the European Union's (EU) member states. The euro was introduced by the EU in to the financial community in 1999 and physical euro coins and paper notes were introduced in 2002. Euros are printed and managed by the European System of Central Banks (ESCB).The euro is abbreviated by the symbol "EUR." |
 |
Investopedia explains 'Euro'The euro is the national currency of the EU member states who have adopted it, including Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Together, these countries create what is called the Eurozone, a region where the euro serves as a common national currency for all of the separate nations.This has important benefits, such as removing exchange rate risk from businesses and financial institutions operating in an increasingly globalized economy. On the other hand, critics of the euro system argue that it produces negative consequences, such as concentrating the power to set monetary policy in the European Central Bank. This removes the ability of the EU's member nations to implement monetary policies specific to themselves, locking them into the monetary policy established for the entire Eurozone, even though local monetary conditions may differ substantially from the overall Eurozone. |
Related Definitions
Articles Of Interest
-
Top 8 Most Tradable Currencies
Currencies can provide diversification for a portfolio that's in a rut. Find out which ones you need to know. -
Making Sense Of The EUR/CHF Relationship
The strong correlation between EUR and CHF currency pairs is undeniable. Find out what it means for forex traders. -
Forex: Wading Into The Currency Market
We go over the ground rules and available resources needed for this undertaking. -
Top 7 Questions About Currency Trading Answered
Whether you're puzzled by pips or curious about carry trades, your queries are answered here. -
Profit From Forex With Currency ETFs
There's always a bull market somewhere - and now you can find it with currency ETFs. -
How is the forex spot rate calculated?
The forex spot rate is determined by supply and demand. Banks all over the world are buying and selling different currencies to accommodate their customers' requirements for trade or to exchange ... -
When and why did the euro make its debut as a currency?
On January 1, 1999, the European Union introduced its new currency, the euro. Originally, the euro was an overarching currency used for exchange between countries within the union while people ... -
Why isn't the EUR/USD currency pair quoted as USD/EUR?
In a currency pair, the first currency in the pair is called the base currency and the second is called the quote currency. Currency pairs can be separated into two types, direct and indirect. ... -
Are eurodollars related to the currency called the euro?
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 currency of the European Union as a means to ... -
Forex Tutorial: The Forex Market
In this online tutorial, beginners and experts alike can learn the ins and outs of the retail forex market.
Free Annual Reports