Definition of Euro

Financial Terms Beginning with E

What is the Euro

The euro is the official currency of the Eurozone, a monetary union composed of 19 of the 27 member countries of the European Union (EU). The countries in the eurozone that currently support the use of the euro include economies like Belgium, Germany, Ireland, Spain, France, Italy, Luxembourg, the Netherlands, Austria, Portugal, Finland, Greece, Slovenia, Cyprus, Malta, Slovakia, Estonia, Latvia and Lithuania. The symbol for the euro is € and its currency code is EUR.

History of the Euro

With the goal of creating a common currency, leaders in Europe signed a currency union in 1992 with the Maastricht Treaty. In 1999, the euro was introduced for electronic transactions and bank transfers. The euro became available in physical form of coins and banknotes in 2002.


Euro Banknotes and Coins

The issuance of notes and coins takes place within the Eurosystem, which is the monetary authority of the eurozone. It is comprised of the European Central Bank (ECB) and the national central banks of the 19 current eurozone members. The available euro banknotes include 5, 10, 20, 50, 100, 200 and 500 euros and the circulated euro coins are the 1 cent, 2 cents, 5 cents, 10 cents, 20 cents, 50 cents, 1 euro and 2 euros.

Forex and Euro

The euro is the second most traded currency in the forex trading market after the US dollar. Commonly traded euro currency pairs include EUR/USD (Euro/US Dollar), EUR/GBP (Euro/British Pound) and EUR/JPY (Euro/Japanese Yen). Forex traders, investors and businesses alike closely monitor the euro due to its integral role in the global economy.

The value of the euro can fluctuate based on several factors such as interest rates set by the ECB, inflation, political stability within the Eurozone, the overall health of the Eurozone economies and global economic conditions.


Final Thoughts on Euro

In summary, the euro serves not only as the unified currency of many European nations but also as a major pillar of the global economy and foreign exchange market. It is a significant marker for international finance and trading, affecting global economic conditions and influencing other world currencies.

GlobEx Markets Financial Dictionary of Terms, Phrases and Concepts

The GlobEx Markets financial dictionary is a reference resource that provides the definitions and explanations of various financial terms, phrases and concepts that are used in international finance and global investing. It includes a broad range of financial terms, such as those related to stocks, bonds, currencies, commodities, options, futures, crypto and much more.

A financial dictionary can be useful for anyone who wants to learn more about finance and investing, or who works in the financial industry. It can help clarify the meaning of technical terms and the language used in financial publications, reports and other sources.

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There are several benefits to using the GlobEx Markets financial dictionary, including:

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Overall, the GlobEx Markets financial dictionary can help improve your understanding of international finance and global investing. It is a valuable tool for anyone who works in the financial industry or who wants to improve their financial literacy.

Related Investment Terms

British Pound Sterling

Currency Risk

Japanese Yen

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