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EURO
From Wikipedia, the free encyclopediaThe
euro (currency sign: ?; banking code: EUR) is the official currency of
the European Union (EU), and is implemented in the Eurozone which
currently consists of 15 states (Austria, Belgium, Cyprus, Finland,
France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the
Netherlands, Portugal, Slovenia, Spain).
It is the single currency for
more than 320 million Europeans. Including areas using currencies pegged
to the euro, the euro directly affects close to 500 million people
worldwide. With more than ?610 billion in circulation as of December
2006 (equivalent to US$802 billion at the exchange rates at the time),
the euro is the currency with the highest combined value of cash in
circulation in the world, having surpassed the U.S. dollar.
The euro was introduced to world financial markets as an accounting
currency in 1999 and launched as physical coins and banknotes on 1
January 2002. It replaced the former European Currency Unit (ECU) at a
ratio of 1:1.
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The euro is managed and administered by the Frankfurt-based European
Central Bank (ECB) and the Eurosystem (composed of the central banks of
the euro zone countries). As an independent central bank, the ECB has
sole authority to set monetary policy. The Eurosystem participates in
the printing, minting and distribution of notes and coins in all member
states, and the operation of the Eurozone payment systems.
While all European Union (EU) member states are eligible to join if they
comply with certain monetary requirements, not all EU members have
chosen to adopt the currency. All nations that have joined the EU since
the 1993 implementation of the Maastricht Treaty have pledged to adopt
the euro in due course. Maastricht obliged current members to join the
euro; however, the United Kingdom and Denmark negotiated exemptions from
that requirement for themselves. Sweden turned down the euro in a 2003
referendum, and has circumvented the requirement to join the euro area
by not meeting the membership criteria. In addition, three European
microstates (Vatican City, Monaco, and San Marino), although not EU
members, have adopted the euro due to currency unions with member
states. Andorra, Montenegro, and Kosovo have adopted the euro
unilaterally, while not being EU members either. (cf. #Eurozone.)
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