euro

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Euro

Originally, the term for a deposit made outside one's home country but denominated in the home country currency. This terminology is confusing now since the new European Currency unit, also called the Euro, was introduced on January 1, 1999.

Euro

The currency of participating member nations of the European Union. The euro was introduced in 1999 and became the official currency of participating nations in 2002. It was intended to remove the exchange rate risk of businesses participating in the EU's common market and free trade association. It has become one of the world's most important currencies. Proponents of the euro state that it is more valuable than the former currencies, while opponents say that it has made goods and services in their home countries more expensive. The euro's ISO 4217 code is EUR. See also: European Central Bank, EURIBOR, Eurozone.

euro

A common currency used by many European countries. The euro was established in 1999 when 11 European countries adopted a common currency in order to facilitate global trade and encourage the integration of markets across national borders. Euro banknotes and coins began circulating in January 2002.

Euro.

The euro is the common currency of the European Monetary Union (EMU). The national currencies of the participating countries were replaced with euro coins and bills on January 1, 2002.

euro (₠)

the common (‘single’) currency of the EUROPEAN UNION (EU), introduced in January 1999 as an integral element in the move towards ECONOMIC AND MONETARY UNION (EMU). Initially, the euro served as a book-keeping ‘unit of account’; in 2002, however, euro banknotes and coins were put into circulation, to replace the individual domestic currencies of EMU members, so the euro is now used as a ‘medium of exchange’ to finance day-to-day transactions in goods, services and financial assets (see MONEY).

Eleven of the 15 countries of EU were founding members of the EMU zone in January 1999: Germany, France, Italy, Spain, Netherlands, Belgium, Austria, Finland, Portugal, Ireland and Luxembourg, with the UK, Sweden, Greece and Denmark adopting a ‘wait and see’ stance. Greece joined the euro-zone in 2001. The UK's position is still to be resolved on the basis of ? ‘tests of fitness’ (see ECONOMIC AND MONETARY UNION entry for details).

The value of the euro against the currencies of nonmembers of the EMU zone ‘floats’ on a day-to-day basis according to supply and demand conditions. For example, the value of the euro against the UK pound was around 71 pence when it was launched in January 1999. After falling to a low of 57 pence in May 2000, the Euro has since recovered and is currently (at March 2005) around 69 pence.

The euro is administered by the EUROPEAN CENTRAL BANK, which is responsible for setting EMU-wide interest rates and determining monetary policy.

Fig. 61 Euro. Euro/£ exchange rate. See entry. Source: The Daily Telegraph .click for a larger image
Fig. 61 Euro. Euro/£ exchange rate. See entry. Source: The Daily Telegraph .

euro (₠)

the common (‘single’) currency of the EUROPEAN UNION (EU), introduced in January 1999 as an integral element in the move towards ECONOMIC AND MONETARY UNION (EMU). Initially, the euro served primarily as a book-keeping ‘unit of account'; in 2002, however, euro bank notes and coins were put into circulation, replacing the individual domestic currencies of EMU members, and the euro was then used as a ‘medium of exchange’ to finance day-to-day transactions in goods, services and financial assets (see MONEY).

Eleven of the 15 countries of the EU were founding members of the EMU zone in January 1999. The value of the euro against each of the individual currencies of the 11 members of EMU was irrevocably fixed at that time, thus serving to fix the cross-exchange rates of one member's currency against all other members’ currencies. These conversion rates ceased in 2002, when domestic currencies themselves were replaced by the euro. The value of the euro against the currencies of nonmembers of the EMU zone ‘floats’ on a day-to-day basis according to supply and demand conditions. For example, the value of the euro against the UK pound was around 71p when it was launched in January 1999. As at April 2005, one euro was worth (UK) 0.69 pence or, expressed in terms of the UK pound, £1 = 1.45₠ (see Fig. 61 ). The euro is administered by the EUROPEAN CENTRAL BANK, which is responsible for setting EMU-wide interest rates and determining monetary policy. Greece joined the eurozone in 2001. See ADJUSTMENT MECHANISM.

References in periodicals archive ?
As a result, investors were prompted to refrain from the European currency, as they became doubtful of the possibility that the Greek rescue program will succeed, and subsequently, in the ability of the euro zone to assist the economically battered countries.
Also, the court said the German parliament would have to be consulted before a German government proceeds with a transition to a single European currency. EC President Jacques Delors was hopeful final Maastricht ratification would provide new impetus to fight unemployment and economic stagnation in Europe.
The 12 countries which compose the European Community agreed on December 11 to a new "European Union Treaty" which will result in a single European currency by the end of the century, will continue progress toward a single economic market, and will take the first steps toward a common foreign and defense policy.
Before the close of the millennium-by 1, January 1999 at the latest-a single currently, the ECU (European Currency Unit), is scheduled to replace national currencies in broad areas of Europe.
The European currency has risen by 38.29 soums and is 9501.05 soums now.
Either we evolve into a full-fledged European currency union, with a political union behind it, or we return to the national currencies," said Verhofstadt.
Export-oriented electronics and precision instrument manufacturers came under pressure, with the single European currency trading in the lower 99 yen range early Wednesday compared with the upper 99 yen zone late Tuesday in Tokyo.
Estonia is set to become the 17th member of the Euro Area with the adoption of the common European currency; it will also become the third country from the former communist states in Eastern Europe to adopt the euro after Slovenia and Slovakia.
Background: Sterling fell sharply against the euro yesterday as its sinks toward parity with the European currency. In theory this should help companies such as Aga Rangemaster by making its products more competitive against rival products made in Germany and Italy.
The pound has fallen steadily against the European currency over the past months as fallout from the global credit squeeze, including a downturn in the previously buoyant domestic housing market, has affected sentiment.
Anti-euro campaigners said the plans showed Britain would not be signing up to the single European currency.
Geordie tv star Tim Healy is urging Tynesiders to donate unwanted European currency to international aid charity UNICEF.

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