A Best Exchange Rates UK Foreign Currency Guide: The History of The Euro

January 6th, 2012

A Best Exchange Rates UK Foreign Currency Guide: The history of the Euro.

The Euro has its origins in the preamble to the Treaty of Rome, which was later built upon in the Maastricht Treaty of 1992.  This introduced the Economic and Monetary Union with the ultimate aim of creating one single currency across the member states. The dates were fixed to create one single monetary unit in 1995 and an EU summit was held in Madrid.

The Euro became the official currency for more than 300 million people in Europe, in 1999. The introduction of the euro foreign currency was designed to strengthen and stabilise the economy. Many of the goals that were intended by the introduction of the Euro have been reached, as economic growth has improved and there has been an integration between the foreign exchange markets. The Euro was introduced as an accounting or electronic currency in 2001 and became legal tender in 12 Member states in 2002. After a few months, participating countries faded out their own foreign currency and for most currencies the transition to the Euro was smooth.

The development of the Euro has had many benefits. It removes fees involved when exchanging foreign currency to firms and tourists who trade within the Euro zone. It has also made it easier for companies selling raw materials and consumers purchasing cheap goods as it is easier to compare the prices across countries.

Euros are issued in coins and in notes. One euro is worth one hundred cents and has a common side and a national side. On the common side of the coin the value is engraved with a map in the background. On the national side there is an image which is chosen by the country that issued the particular coin. Each Euro banknote has the signature of the President of the European Central Bank and has its own colour.

The Euro is one of the biggest foreign currencies in the world, as it is used by so many countries. Many British holiday makers travel within the EU, and look to find the best exchange rate pound to euro as they maximise the currency they received in exchange for their hard earned money.

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