Also found in: Acronyms.
The ISO 4217 currency code for the European currency Unit (ECU).
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
ISO 4217 currency code for the European currency unit. Prior to the adoption of the euro, the XEU was set up as currency basket to provide a methodology for reconciling differing exchange rates between currencies who wished to participate in the single European currency. Established in the 1979, it was known as a "semi-pegged" system in which currencies were variable with respect to each other only within a certain range. After the introduction of the euro in 1999, the exchange rate mechanism was replaced by ERM II, which reconciles exchange rates for countries wishing to join the eurozone. See also: Exchange rate mechanism.
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