history of euro currency

8/3/2019 HisTory of Euro Currency

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The Euro was established by the

provision in 1992 Maastricht Treaty

on European Union that was used to

established an Economic and

Monetary Union.

In 1999, the euro area was

established as a currency in eleven of

then fifteen EU Member States.


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Of the 27 EU Member States

today, fifteen have adoptedthe euro.

One of the striking benefits of

a single European currencyare low interest rates due to a

high degree of price stability.


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The euro is as stable

and credible as the

best-performing

currencies previously

used in the euro area

countries.


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The euro is managed and

administered by the Frankfurt-

based(ECB) and the Euro

system.

As an independent central

bank, the ECB has sole

authority to set monetary

policy.


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The 1992 MaastrichtTreaty

obliges most EU member

states to adopt the euro

upon meeting certain

monetary and budgetary

requirements.


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Elimination of exchange rate

fluctuation.

Transaction costs

Price parity.

Increased trade across borders.

Increased cross border

employment.

simplified building.


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After the introduction

of the euro, its exchangerate against other

currencies, especially

the US dollar, declinedheavily.


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Preceding national currencies of the Euro zone

Austrian schilling ATS 13.7603 31 December 1998 1999

Belgian Franc BEF 40.3399 31 December 1998 1999

Dutch guilder NLG2.20

37131 December 1998 1999

Finnish Markka FIM 5.94573 31 December 1998 1999

French Franc FRF 6.55957 31 December 1998 1999

German Mark DEM 1.95583 31 December 1998 1999

Irish Pound IEP 0.787564 31 December 1998 1999


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Italian lira ITL 1,936.27 31 December 1998 1999

Luxembourgish

franc LUF40.3399 31 December 1998 1999

Monegasque

francMCF 6.55957 31 December 1998 1999

Portuguese

escudo

PTE

200.482 31 December 1998 1999

Sammarinese

liraSML 1,936.27 31 December 1998 1999

Spanish

pesetaESP 166.386 31 December 1998 1999

Vatican

liraVAL 1,936.27 31 December 1998 1999


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The Euro consumes more imported petroleum than

the United States. This Would mean that more than

US dollars would flow into OPEC nations in US dollars

only.


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There have been frequent discussion at OPEC about

pricing oil in Euros, which would have varius effects,

aming them,requiring nations to hold stores of euros to

buy oil, rather than the US dollars that they hold now.


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A NEW RESERVE CURRECY

The euro will probably become one

of the major global reserve

currencies. Currently, international

currency exchange is dominated by

the americea dollar.

If the euro were to become reserve

currency it would benefit member

countries by lowering their debts.


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history of euro currency

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