The euro is the official currency of 20 European Union countries which collectively make up the euro area, also known as the eurozone.
Some EU countries have yet to meet the criteria required to join the euro area while Denmark has opted not to participate.
Within the euro area, the euro is the only legal tender. In the absence of a specific agreement concerning the means of payment, creditors are obliged to accept payment in euros.
Parties may also agree to transactions using other official foreign currencies (e.g. the US dollar). They may also agree to use privately issued ‘money’ like local exchange trading systems (e.g. voucher-based payment systems) or virtual currencies (e.g. Bitcoin).
These private and business transactions are still subject to taxation law, business law, anti-money laundering law and other general commodity trade rules. However, currencies which are not official within the euro area, are not governed by monetary law.
Article 128 (1) TFEU lays down the legal tender status of euro banknotes, and article 11 of Regulation EC/974/98 does so with regard to euro coins.
FAQs
Euro – official EU currency | European Union.
Where can I change old euro notes? ›
Exchanging at central banks
You can exchange your old currency at a central bank for a much longer period. Like retail banks, central banks might apply limits on the amount per transaction. Very old cash may not be exchangeable.
What is the official form of currency for the European Union? ›
Currently, the euro (€) is the official currency of 20 out of 27 EU member countries which together constitute the Eurozone, officially called the euro area.
What is the relationship between the euro currency of the European Union and Eurocurrency? ›
The term eurocurrency is a generalization of eurodollar and should not be confused with the EU currency, the euro. There is also a eurobond market for countries, companies, and financial institutions to borrow in currencies outside of their domestic market.
Is the euro getting stronger against the US dollar? ›
Euro to US Dollar Exchange Rate is at a current level of 1.108, up from 1.102 the previous market day and up from 1.073 one year ago. This is a change of 0.59% from the previous market day and 3.27% from one year ago.
What happens if the US dollar appreciates against the euro? ›
Forex Trading
If the value appreciates, demand for the currency also rises. In contrast, if a currency depreciates, it loses value compared to the currency against which it is being traded. If the U.S. dollar (USD) / euro (EUR) exchange rate changed from 0.92 to 0.95, the USD appreciated against the EUR by 3.26%.
Are all old Euro notes still valid? ›
All the notes are legal tender throughout the euro area.
What to do with old European money? ›
Don't toss foreign currency in your junk drawer. There are plenty of ways to exchange it — or donate to a worthy cause.
- Exchange at the airport.
- Go to the bank.
- Go to an exchange bureau.
- Visit collectible shops.
- Try the internet.
- Use a leftover currency specialist.
- Charities and other donations.
Exchanging old banknotes
Many banks accept withdrawn notes as deposits from customers. The Post Office will also accept withdrawn notes as a deposit into any bank account you can access at the Post Office. And you can always exchange withdrawn notes with us.
Will the euro become a reserve currency? ›
He said it is "absolutely conceivable that the euro will replace the dollar as reserve currency, or will be traded as an equally important reserve currency." As of 2021, however, the euro has not displaced the U.S. dollar as primary reserve currency due to the European debt crisis.
Whether you're buying a meal in Europe or taking a taxi in Asia, you may be asked if you want to pay in dollars or the local currency. It may be tempting to settle for the amount you're offered in dollars (USD), out of habit and familiarity. But in most cases it will cost you more.
Which is higher euro or dollar? ›
9. Euro (EUR) The Euro is the ninth strongest currency in the world with 1 Euro buying 1.08 US dollars (or US$1 equals 0.93 euros). The Euro is the official currency of the Eurozone, being 20 out of the 27 countries that form part of the European Union.
What is the euro currency short note? ›
The euro (symbol: €; currency code: EUR) is the official currency of 20 of the 27 member states of the European Union. This group of states is officially known as the euro area or, more commonly, the eurozone. The euro is divided into 100 euro cents.
Which EU countries do not use the euro as their currency? ›
The seven non-eurozone members of the EU are Bulgaria, the Czech Republic, Denmark, Hungary, Poland, Romania, and Sweden. They continue to use their own national currencies, although all but Denmark are obliged to join once they meet the euro convergence criteria.
What are the disadvantages of the euro currency market? ›
By far, the largest drawback of the euro is a single monetary policy that often does not fit local economic conditions. It is common for parts of the EU to be prospering, with high growth and low unemployment. In contrast, others suffer from prolonged economic downturns and high unemployment.
What is the common currency adopted by the European Union responses? ›
The euro is the single currency shared today by 20 Member States of the European Union, which together make up the euro area.
What is the currency union of the EU? ›
The Economic and Monetary Union (EMU) represents a major step in the integration of EU economies. Launched in 1992, EMU involves the coordination of economic and fiscal policies, a common monetary policy, and a common currency, the euro.
Which country currency is EU? ›
You can use the euro in 20 EU countries: Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.
What is the meaning of € €? ›
The euro is a unit of money that is used by the member countries of the European Union which have accepted European monetary union. It is represented by the symbol €. A euro is divided into one hundred smaller units called cents.
