International status and usage of the euro
The international status and usage of the euro has grown since its launch in 1999. When the euro formally replaced 12 currencies on 1 January 2002, it inherited their use in territories such as Montenegro and replaced minor currencies tied to pre-euro currencies, such as in Monaco. Four small states have been given a formal right to use the euro, and to mint their own coins, but all other usage outside the eurozone (the EU states who have adopted the euro) has been unofficial. With or without an agreement, these countries, unlike those in the eurozone, do not participate in the European Central Bank or the Eurogroup.
Its growing use in this regard has led to its becoming the only significant challenger to the U.S. dollar as the world's main reserve currency.
International adoption
Sovereign states
State | Adopted euro | Issuing rights | Pop. |
---|---|---|---|
Andorra[1] | 1 January 1999 (de facto)[a] 1 April 2012 (de jure)[2] |
1 July 2013 | 82,000 |
Monaco[3][4][5][6] | 1 January 1999 | 1 January 2002 | 32,671 |
San Marino[7][8][9][10] | 29,615 | ||
Vatican City[11][12][13][14] | 800 |
Several
A
Dependent territories outside the EU
Outside the EU, there are currently three
The first OCTs to adopt the euro through a monetary agreement were the French overseas territories of
On 22 February 2007,
With the adoption of the euro by Cyprus on 1 January 2008, the
Territories outside EU | Adopted euro | Agreement | Pop. | Notes | |
---|---|---|---|---|---|
Akrotiri and Dhekelia | 1 January 2008 | 7 August 2007[24] | 14,500 | UK dependent territory. Replaced the Cypriot pound with the euro along with Cyprus.[24] | |
Saint Pierre and Miquelon | 1 January 1999 | 31 December 1998[28] | 6,125 | An OCT of France. | |
French Southern and Antarctic Lands | 1 January 1999 | 140 | An OCT of France. | ||
Saint-Barthélemy
|
1 January 1999 | 12 July 2011[26] | 8,823 | Agreement entered into force on 1 January 2012 when the territory's status changed from an OMR to an OCT.[26] |
Unilateral adopters
State/Territory | Adopted | Seeking | Notes | Pop. |
---|---|---|---|---|
Kosovo | 1 January 2002[b] | EU membership[30] | Potential candidate
|
1,700,000 |
Montenegro | 1 January 2002[c] | EU membership[31] | Candidate
|
684,736 |
Montenegro and Kosovo have also used the euro since its launch, as they previously used the German mark instead of the Yugoslav dinar. Unlike the states above, they do not have a formal agreement with the EU to use the euro as their currency, and have never minted marks or euros; rather, they depend on bills and coins already in circulation.[32][33][34]
Due to concerns that Serbia could use the dinar to destabilise Kosovo and Montenegro (the latter was in a political union with Serbia until 2006), both received Western help in adopting and using the mark (though there was no restriction on the use of the dinar or any other currency). They switched to the euro when the mark was replaced. In North Kosovo, mainly populated by the Serbian minority, the Serbian dinar, which replaced the Yugoslav dinar, continues to be used despite its lack of recognition or use elsewhere in Kosovo.[35]
The use of the euro in Montenegro and Kosovo has helped stabilise their economies, and for this reason the adoption of the euro by small states has been encouraged by former
In October 2012, Panamanian President Ricardo Martinelli suggested that he was considering making the euro the third official currency of Panama, alongside the U.S. dollar and Panamanian balboa.[36]
Usage in states with another official currency
In various countries, the euro is accepted by some merchants despite not being the official currency there. Additionally, it is sometimes used for pricing purposes even when actual payments are made in the official currency (e.g., for real estate).
EU members outside the eurozone
The euro is often accepted in shops in countries neighboring the eurozone, like the border areas and capitals of Poland, the Czech Republic and Hungary, which are near to Germany, Austria, Slovenia and Slovakia; the border areas of Switzerland, which is entirely surrounded by eurozone members; the border areas between Sweden and Finland; and more.
Also, a large number of petrol stations and motorway service areas in European countries outside the eurozone accept euros, and Poland (as well as non-EU members Bosnia and Herzegovina and Serbia) allow payment of highway tolls in euros.[32]
The euro is explicitly included in some laws in non-eurozone countries, including
In some areas of
United Kingdom
Some tourist-oriented shops in the United Kingdom accept the euro.[citation needed] In Northern Ireland, which shares a land border with the eurozone, the euro is accepted in some shops, including many chain stores.[37]
Northern Cyprus
The application of
Presently, the TRNC government has declared the Turkish lira to be its legal tender. The euro (along with other major currencies, such as the U.S. dollar and British pound) can be used to pay for goods and services in many shops associated with or situated near tourist hotspots, as well as some major supermarkets.[39][40] However, the exchange rate used by these businesses may not always reflect the true value of the currencies involved.[41][42] Cypriot euro coins, using both Greek and Turkish languages, have been designed to avoid any bias towards any particular area of the island,[43] in keeping with both Greek and Turkish being the official languages of the Republic of Cyprus.[44] Some in northern Cyprus have called for the unilateral adoption of the euro.[45]
Zimbabwe
From April 2009 to June 2019,
Trading currency
In 1998, Cuba announced that it would replace the U.S. dollar with the euro as its official currency for the purposes of international trading.[49] On 1 December 2002, North Korea did the same. (Its internal currency, the wŏn, is not convertible and thus cannot be used to purchase foreign goods. The euro also enjoys popularity domestically, especially among elites and resident foreigners.) Syria followed suit in 2006.[50]
Since 2007, Iran has asked all petroleum customers to pay in non-U.S. dollar currency in response to American sanctions. This has resulted in the Iranian oil bourse trading in several currencies, predominantly the euro for European trade, and either the yen or euros for sales in Asia.
In 2018, in response to U.S. sanctions, the Venezuelan Minister of Industries and National Production
Pegged currencies
Currently, there are several currencies
In 2011, the Swiss franc was rapidly appreciating against the euro, harming its exports to the eurozone. In response, Switzerland implemented a cap to the Swiss franc's value. This was not so much a peg, as they were merely limiting its highest value and not its lowest.
Flag(s) | State | Pop. | Area (km2) | Code | National currency | Central rate | Pegged since | Fluctuation band | Formerly pegged to | EMU |
---|---|---|---|---|---|---|---|---|---|---|
Bosnia and Herzegovina | 3,475,000 (2020 est.) |
51,129 | BAM | Bosnia and Herzegovina convertible mark | 1.95583 | 1 January 1999 | 0.00% | DEM (from 21 November 1995) | ||
Bulgaria | 6,447,710 (2022 est.) |
110,910 | BGN | Bulgarian lev | 1.95583 | 1 January 1999 | 0.00% | DEM (from 1997) | ERM2 | |
Cabo Verde
|
561,901 (2021 cs.) |
4,033 | CVE | Cape Verdean escudo | 110.265 | 1 January 1999 | 0.00% | PTE (from middle of 1998) | ||
Comoros | 850,886 (2019 est.) |
2,170 | KMF | Comorian franc | 491.9678 | 1 January 1999 | 0.00% | FRF (from 23 November 1979) | ||
Denmark | 5,935,619 (2023 est.) |
43,094 | DKK | Danish krone | 7.46038 | 1 January 1999 | 2.25% (de facto 0.5%) | XEU | ERM2 | |
Morocco (inc. Western Sahara) |
37,984,655 (2022 est.) |
712,550 | MAD | Moroccan dirham | ≈ 11 | 1 January 1999 | – | |||
North Macedonia | 1,836,713 (2021 est.) |
25,713 | MKD | Macedonian denar | 1 January 1999 | DEM (from October 1995)[52] | ||||
São Tomé and Príncipe | 220,372 (2023 est.) |
1,001 | STN | São Tomé and Príncipe dobra | 24.5 | 1 January 2010 | 0.00% | |||
XOF currency union ;Benin Burkina Faso Côte d'Ivoire Guinea-Bissau Mali Niger Senegal Togo |
141,244,341 (14,214,095 22,489,126 2,078,820 29,344,847 21,359,722 25,396,840 18,383,658 8,703,961 (2023 est.)) |
3,269,077 | XOF | West African CFA franc | 655.957 | 1 January 1999 | 0.00% | FRF (from 17 October 1948) | ||
XAF currency union; Cameroon Central African Republic Chad Republic of the Congo Equatorial Guinea Gabon |
64,023,929 (30,135,732 5,552,228 18,523,165 5,677,493 1,737,943 2,397,368 (2023 est.)) |
2,757,528 | XAF | Central African CFA franc | 655.957 | 1 January 1999 | 0.00% | FRF (from 17 October 1948) | ||
XPF currency union; French Polynesia New Caledonia Wallis and Futuna |
561,751 (278,786 271,407 11,558 (2022/ 2019/ 2018 census)) |
19,597 | XPF | CFP franc | 119.3317 | 1 January 1999 | 0.00% | FRF (from 21 October 1949) |
The Bulgarian lev is pegged to the euro through a
The Moroccan Dirham has been historically pegged to a basket of currencies including the Euro and the US Dollar. In 2015, the Central Bank updated the weights of the peg to 60% for the Euro and 40% for the US dollar, against respectively 80% and 20% previously, to better reflect the current structure of foreign trade of the country.[54]
The
Since 2005, stamps issued by the Sovereign Military Order of Malta have been denominated in euros, although the Order's official currency remains the Maltese scudo.[55] The Maltese scudo itself is pegged to the euro and is only recognised as legal tender within the Order.
Reserve currency status
The percental composition of currencies of official foreign exchange reserves from 1995 to 2022.[56][57][58]
Graphs are unavailable due to technical issues. There is more info on Phabricator and on MediaWiki.org. |
The euro is a major global
The possibility of the euro becoming the first international reserve currency was widely discussed before 2009.[62] Former Federal Reserve Chairman Alan Greenspan gave his opinion in September 2007 that the euro could indeed replace the U.S. dollar as the world's primary 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."[63]
As of 2021, however, the euro has not displaced the U.S. dollar as primary reserve currency due to the European debt crisis.[citation needed] The euro's stability and future existence was doubted and its share of global reserves fell to 19% by year-end 2015 (compared to 66% for the U.S. dollar). As of year-end 2020, these figures stand at 21% for the euro and 59% for the U.S. dollar.
See also
- Dollarisation
- International use of the U.S. dollar
- Internationalization of the renminbi
- Central banks and currencies of Africa
- Central banks and currencies of the Caribbean
- Reserve currency
Notes
- ^ Between 1 January 1999, when the euro was launched, and 1 April 2012, when their Monetary Agreement with the EU came into force, Andorra did not have an official currency but used the euro as their de facto currency.
- Republic of Kosovounilaterally adopted the Euro as its official currency.
- ^ Montenegro abandoned the use of the Yugoslav dinar in November 1999. Since then, the Deutsche Mark was used as legal tender. When Germany yielded the Deutsche Mark for the Euro on 1 January 2002, Montenegro unilaterally adopted the Euro as its official currency.
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