Euro is Euro exchange rate of the Central Bank of the Russian Federation

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Euro is one of the most demanded and expensive currencies in the world. With its help, payment transactions are made in the countries of the eurozone. If we calculate, then about 300 million people use the euro daily, and the volume of banknotes in circulation is ahead of US dollars.

The emergence of the euro as a currency

It was born at the beginning of 1999. Then only non-cash payment was possible, but after 3 years cash bills appeared.

The Council of European Central Banks has since controlled the issuance of paper banknotes and coins, all payment transactions, the spread of currency outside the eurozone countries. But the most important task is to keep the course at a high level.

In January and February 2002, all previous national currencies had to be replaced by the euro at the established rate. Currently, cash payments in euros are made only in the countries of the eurozone. For further expansion, countries with this national currency must join the EMR-2 (European Financial Currency Exchange Mechanism). But whether the rest of the EU countries will become members of the EMR-2 or not will be known only in 2019.

Coins and banknotes

Coins in denominations of 1 and 2 euros are in circulation. Since 1 euro is 100 euro cents, then alsocoins are issued 0, 5, 0, 2 and even 0, 01.

Paper money and coins are issued not only in the European Central Bank, but also in the national banks of the EU countries. Here for banknotes there are strict requirements for the format, color and density of paper, but an exception is made for coins - it is allowed to create a specific design on the reverse. Most countries in the eurozone depict national motifs on the reverse, reflecting the history of the state. The front part of the coin is always made according to the standard, and the drawing on it is declared. Euro cents are not minted everywhere. So, for example, in Austria there is no price adjustment, so the demand for 0, 05 and 1 eurocent is constant. Pricing in many other EU countries, on the contrary, leads to completely getting rid of small denominations.

Paper euros also have their own characteristics: 200 and 500 euros are a denomination that is considered inappropriate for cash. The printing of such banknotes is carried out in certain banks, but they must be recognized within the absolutely entire eurozone. Banknotes in denominations from 5 to 100 are in daily circulation in all European countries and are considered a state means for payment transactions.

How did the symbol €

The full picture of the creation of the euro symbol is still unclear. According to one of the most popular versions, a group of 4 specialists developed this symbol as a result of social research, as well as the development of many variations of the image. After that, the basis wasthe Greek letter "epsilon" is taken, which is crossed by two parallel lines, symbolizing the stability of the currency. But often the veracity of this version is questioned, because the names of these secialists are still unknown.

At the same time, Arthur Eisenmenger is trying to protect his copyright, claiming that it was he who created this symbol. Which version is historically accurate is still unknown.

The € symbol is also enshrined in the national standard, which defines its dimensions, requirements for the image of angles and lines. The banknotes are also protected by an individual serial number, where the first letter indicates the state in which the banknote was printed.

Reserve currency

Before the advent of €, francs and Deutsche Marks were reserve currencies. To date, the euro is the second reserve currency, accounting for 30% of the global foreign exchange market.

Contrary to all fears, the European Union has accepted the euro as a single currency and sees prospects in its development in order to take an even larger share in the currency "basket".

Exchange rate

The ratio of different currencies to each other is due to several factors:

1. Inflation is the most unpleasant phenomenon that directly reduces the exchange rate of the Central Bank's euro against the ruble and dollar. In other words, inflation eats away at the value of money.
2. The balance of payments of the state, in which the demand for foreign currencies significantly reduces the value of national capital.
3. Demand for currency in international settlement transactions. Oncesupply exceeds demand, then, for example, the euro exchange rate against the ruble is declining.
4. Trust of people and organizations: here it is important in which banknotes they prefer to save and increase their budget.
5. Interest rate for euro, dollar and ruble in different countries.
6. Currency policy in these countries.

Course and its formation

It is impossible to accurately predict the euro exchange rate of the Central Bank, because it is greatly influenced by political and economic stability in relations between countries. If the situation in the world is calm, then the fluctuations are short-term and insignificant.

The formation of the value of the currency begins with the results of international trade, where export goods are bought and sold. As a result, the euro exchange rate against the ruble, for example, will show the ratio of the purchasing power of the European currency to the Russian one. This phenomenon is called the real exchange rate, but in addition to it, there is also an exchange rate. According to it, the bank issues currency to its customers.

The decision on what will be the exchange rate of the euro against the dollar is taken by the European Central Bank. The Central Bank is not directly involved in the growth or fall in the value of the euro, but is trying to smooth out sharp jumps in price dynamics.

The main reference point is the dual-currency basket, which includes 45 euro cents and 55 US cents.

Based on this, the European Central Bank establishes the euro exchange rate against the dollar, taking into account market quotations in the domestic foreign exchange market.

Daily exceptSaturdays and Sundays, euro exchange rates are set against the dollar and the ruble. Buying, selling it to individuals and individuals is carried out at this price until the following changes take effect.

Renewed €10 banknote

In 2014, the European Central Bank introduced an updated 10 euro banknote into circulation. The changes did not affect the color scheme and the main image on the reverse side (stone bridge). The main thing is protection against forgery. Although counterfeit banknotes of this denomination are extremely rare, the European Central Bank nevertheless decided to replace them with more modern and secure ones.

What changes have been made to ten euros? The introduction of a watermark, a security strip in the center of the banknote, an increase in the number 10 on the left side of the banknote and on the reverse side and its coloring in holographic emerald blue colors, the inscription "ECB" was translated into 9 languages, and the name "EURO" appeared in Cyrillic. The surface of the banknote is treated with a special composition, which increases its resistance to mechanical stress.