European Currency Unit - ECU


DEFINITION of 'European Currency Unit - ECU'

The European Currency Unit (ECU) was the precursor to the Euro, the shared single currency of the European Union's member countries. While the Euro is the actual currency of the European Union, the ECU was artificial currency developed by the initial EU member states for their internal accounting purposes.

BREAKING DOWN 'European Currency Unit - ECU'

The ECU was first adopted in 1979 by the European Economic Community, the predecessor of the European Union. In 1999, the ECU was replaced by the Euro, at parity.

  1. Currency

    Currency is a generally accepted form of money, including coins ...
  2. Exchange Rate

    The price of a nation’s currency in terms of another currency. ...
  3. Exchange Rate Mechanism - ERM

    An exchange rate mechanism is based on the concept of fixed currency ...
  4. Parity

    1. In general, a situation of equality. Parity can occur in many ...
  5. European Union - EU

    A group of European countries that participates in the world ...
  6. European Central Bank - ECB

    The central bank responsible for the monetary system of the European ...
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