As an independent central bank, the ECB has sole authority to set monetary policy. The euro is managed and administered by the European Central Bank (ECB, Frankfurt am Main) and the Eurosystem, composed of the central banks of the eurozone countries. Main articles: European Central Bank, Maastricht Treaty, and Eurogroup Characteristics Administration The European Central Bank seat in Frankfurt am Main

On 13 July 2022, the two currencies hit parity for the first time in nearly two decades due in part to the 2022 Russian invasion of Ukraine. īetween December 1999 and December 2002, the euro traded below the US dollar, but has since traded near parity with or above the US dollar, peaking at US$1.60 on 18 July 2008 and since then returning near to its original issue rate. Physical euro coins and banknotes entered into circulation on 1 January 2002, making it the day-to-day operating currency of its original members, and by March 2002 it had completely replaced the former currencies. The euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1 (US$1.1743 at the time). The name euro was officially adopted on 16 December 1995 in Madrid. As of December 2019, with more than €1.3 trillion in circulation, the euro has one of the highest combined values of banknotes and coins in circulation in the world. The euro is the second-largest reserve currency as well as the second-most traded currency in the world after the United States dollar. Additionally, over 200 million people worldwide use currencies pegged to the euro. Outside Europe, a number of special territories of EU members also use the euro as their currency. The currency is also used officially by the institutions of the European Union, by four European microstates that are not EU members, the British Overseas Territory of Akrotiri and Dhekelia, as well as unilaterally by Montenegro and Kosovo. This group of states is officially known as the euro area or, commonly, the eurozone, and includes about 344 million citizens as of 2023. The euro ( symbol: € currency code: EUR) is the official currency of 20 of the 27 member states of the European Union. For other uses, see EUR (disambiguation).ġc, 2c (Belgium, Finland, Ireland, Italy, Netherlands ) For other uses, see Euro (disambiguation).

Euro 20 cent