The official currency used in the Eurozone is the Euro (EUR). The eurozone consists of the 17 states of the European Union: Austria, Cyprus, Estonia, Portugal, Belgium, Germany, Malta, Portugal, Netherlands, Italy, Ireland, Greece, Luxemburg, France, Slovakia, Spain, and Slovenia. The Euro is second-largest currency that is traded worldwide.
Economy
The Euro is seen as a macro-economy system. It gives the countries that are part of the eurozone economical stability.
Trade industry increased by 5% since the implementation of the Euro.
Exchange rate risk is reduced for all the countries in the eurozone.
Most countries also experienced a reduction in interest rates.
Tourism in the EU countries has also increased by 6.5% because of the common currency.
The exchange rate for the Euro is a floating or flexible rate.
History
In 1992, the Euro was established by the Maastricht Treaty.
Strict rules were given to the member states before they could become part of the eurozone. Two countries were exempt from the rules–the United Kingdom and Denmark.
The name was established in 1995, when the Euro replaced the “European currency unit”.
In 1998, the European Commission determined the rates according to the European currency unit, which equaled 1 Euro. The EU used the European currency unit as an accounting unit, based on the member states’ currencies.
The Euro unofficially replaced the European currency unit in 1999. In 2002, all old currencies were discontinued and replaced by the new Euro notes and coins. Member countries discontinued their old notes and coins at a different times.
