Brief History of The Exchange Rate For Euro

November 27th, 2012

Since the introduction of the euro in 1999, the exchange rate for euro has seen a turbulent first thirteen years. In this article we will take a look back at the history of the euro and pick out some highlights in the history of the euro exchange rate.
Replacing the European Currency Unit (ECU) at midnight on the 1st of January 1999, the Euro was born and many were divided in their opinions as to how the young Euro would grow up – how it would fare, and what troubles it would encounter along the way. The task of printing and minting all the coins was a herculean task if ever one existed, and experts estimated that it would take a full three years: 7.4 billion notes and 38.2 billion coins were available for consumers and businesses on 1 January 2002, when the currency entered the public domain.
As midnight struck to usher in 2002, there were massive displays of celebration throughout countries in the Eurozone, which included a huge illuminated mock-up of a euro coin in front of the European Central Bank offices in Frankfurt. The transition played out incredibly smooth despite the forecasts of huge problems by some. From 2002, the exchange rate for euro improved dramatically after an initial slump that came before. The rate improved and peaked in 2004, and reached its best rate against the US dollar in 2008.
In the later months of 2008 disaster struck as the global financial crisis began – within nine years of life, the euro had entered its first official recession. The recession at first did not damage the euro as severely as many though that it would; some believed that the recession could ultimately lead to the breakup of the Eurozone.
As the world economy struggled as a whole, the exchange rate for euro was damaged as various countries fell into financial difficulties. Spain, Italy and Greece all struggled and put extra strain upon the Eurozone. The exchange rate for euro has been poorer when compared with the British pound as of late, meaning that many British citizens have been enjoying holidays in European countries, where they are now able to get better value for their money.