The EU currency is the euro. Course history. Introduction of the currency

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

Today, in nineteen European countries, the euro is used as the official currency. This currency was put into circulation in countries that formed a common political and economic alliance - the European Union (EU). In these states, only the euro is the official currency. The history of the exchange rate of this currency in relation to other banknotes knows both periods of stability and moments of instability.

History of the introduction of the euro

Before the creation of the EU integration association, each of the European states itself issued money and determined the rate of its own banknotes. Such an order significantly hampered cooperation between countries and made settlement operations more complex. The prototype of the common currency was the ECU (English European Currency Unit, ECU), which was used from 1979 to 1998. This monetary unit took part in the process of settlements in a non-cash form, and was also used in the issuance of government loans and bonds.

From 1999 to 2002 in the European community there was a simultaneous use of national currencies and the common currency euro, the history of which dates back to January 1999. Since February 2002, on the territory of manyEuropean countries, the euro becomes the exclusive payment instrument. The history of the exchange rate, the issuance of paper notes and metal coins from that moment were within the competence of the European Central Bank. These countries initially included Germany, France, Italy, Austria and the Netherlands. In addition, the new banknote was immediately put into circulation in Portugal, Belgium, Spain, Ireland, Luxembourg and Finland.

Other countries of the European Union got the opportunity to switch to a common currency in calculations a little later. To do this, they needed to fulfill the terms of the Maastricht Agreement. The B altic states were among the last to enter the common currency zone. So, Estonia introduced it in 2011, Latvia in 2014, and Lithuania in 2015. On the territory of such states as Cyprus and M alta, Slovakia and Slovenia, as well as Greece, the euro began to be used somewhat earlier.

History of the ratio of the euro to the Russian ruble

The highest euro exchange rate in history was recorded on January 22, 2016. On this day, quotes against the Russian ruble were 1 to 91, 1814. The history of the euro against the ruble also consists of a period of relative stability. For example, on October 28, 2008, these quotes were at the level of 1 to 34.0844. This is the lowest exchange rate of the euro against the Russian ruble in history. The average ratio of the European currency and the Russian ruble for the specified period is 1 to 46.6238.

Official introduction of the euro into circulation

The launch of the euro into circulation and use took placestep by step. So, at first, the currency was introduced into cashless payments, and only later did the issue of paper banknotes and metal coins occur.

The first day of 1999 is considered the official day of the start of the use of the common currency. On January 1 at midnight European time, the states that are members of the European Economic and Monetary Union, or EMU, switched to the use of a common new money - the euro. The history of the exchange rate of this currency begins at this very moment.

The national banknotes of the states that were members of the aforementioned union were rigidly pegged to the euro, which is becoming an independent and full-fledged payment instrument. During that period, new money and national banknotes were used simultaneously. The first foreign exchange auction involving the euro was held on January 4, 1999.

quotes of national currencies and euro for conversion

During those auctions, the ratio of some national currencies to the new common currency was established. So, for conversion, one euro was estimated at 1.956 German marks, 6.660 French francs, 5.946 Finnish marks, 0.788 Irish pounds. In addition, quotes were valid for other currencies: 1€=1936, 21 Italian lire, 1€=166, 39 Spanish pesetas, 1€=200, 48 Portuguese escudos, 1€=40, 34 Belgian-Luxembourg francs, 1 €=2,204 Dutch guilders and 1€=13,760 Austrian shillings.

Euro, whose course history has been different for many yearsstability in relation to major world currencies, has recently been losing its positions. Today, there is a tendency for the US dollar to strengthen against the common European banknotes.