Euro

The euro (symbol: €; ISO code: EUR) is the official currency of many countries that are members of the European Union. The group of countries using it is known as the eurozone. The euro was introduced in 1999 as an electronic currency for accounting and financial markets, with banknotes and coins entering circulation in early 2002.

The euro is managed by the European Central Bank (ECB), headquartered in Frankfurt, Germany, in cooperation with the central banks of member states. Their combined system is called the Eurosystem. The primary goal of monetary policy is price stability, meaning keeping inflation rates low and steady.

Brief history

The idea of a single currency originated in 20th-century plans for European economic integration. The Maastricht Treaty of the early 1990s set the conditions for monetary union: control of inflation, limits on deficits and government debt, and exchange rate stability. The first countries adopted the euro in 1999, with others joining at various later times.

Monetary structure

The euro is divided into 100 cents. Euro banknotes have a common design across all countries, while coins have a common side and a national side specific to each country. All coins issued in the eurozone are legal tender throughout the area.

Use outside the European Union

Some countries and territories outside the European Union use the euro as official currency, some by agreement with the EU and some unilaterally. The euro is also one of the world's largest reserve currencies and is traded on global foreign exchange markets.