Posted in Finance, Accounting and Economics Terms, Total Reads: 394
EUR stands for Euro which is the currency for European Union. The European Union is the association of 28 member states namely Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Out of the official 28 members only 18 members use EURO as their official currency.
The EURO is the 2nd largest reserve currency in the world and also the 2nd most traded currency after the US Dollar. The EURO came into existence on 16th December 1995. But it came into accounting effect from 1st Jan 1999 replacing the former European Currency Unit. Physical currency and notes came into effect from 1 st Jan 2002. The EURO is administered by European Central Bank(ECB) in Frankfurt, which acts as an independent central bank with the controls of monetary policy in its rein. According to the Maastricht treaty all the member nations are to adopt EURO as their official currency after fulfilling the monetary and budgetary convergence criteria.
The Euro in denomination wise is divided into 100 cents with 1,2,5,10,20,50 cents into circulation in the form of coins. 1,2 EURO also comes in coin version. While the notes come in the denomination of 5,10,20,50,100,200,500.