Euro

It is important to understand how the Euro was formed before you engage in trading the Euro at a forex site. The member states of the European Union agreed on 15 December 1995 in Madrid the creation of a common European currency in January 2002. The Euro curreny was officially introduced on 1 January 1999, when it ceased to exist as independent systems the currencies of eleven EU countries that opted for the single currency plan, the so-called euro zone: Austria, Belgium, Spain Finland, France, Ireland, Italy, Luxembourg, the Netherlands and Portugal. On the 1st of January 2001 Greece joined. However, because a period of production was required for the new notes and coins, the old national currencies, despite having lost the official rate on the foreign exchange market remained as payment until 1 January 2002, when they were replaced by euro notes and coins. On 1 January 2002, euro notes and coins began circulating in twelve of the fifteen Member States that, at that time comprised the European Union (EU). On 1 May 2004 ten new countries joined the EU. On 1 January 2007 the EU was expanded to two more countries. It is expected that new members participate in the Economic and Monetary Union (EMU) and adopt the euro once they have fulfilled the convergence criteria. Of the twelve new members, Slovenia adopted the euro on 1 January 2007. On 10 July 2007, the Council of the European Union confirmed that Cyprus and Malta met the convergence criteria and adopt the euro on 1 January 2008. The euro banknote series comprises seven different denominations: 5€, 10€, 20€, 50€, 100€, 200€ and 500€; all are legal tender throughout the euro area.

The euro coin series comprises eight different denominations: 1, 2, 5, 10, 20 and 50 cents, 1 € and 2 €. All euro coins have one common side and one national. The latter indicates the issuing country. The coins can be used interchangeably in all countries of the euro area. The design of the common sides of euro coins is the work of Luc Luycx, the Royal Mint of Belgium. They show images of the European Union and Europe, symbolizing the unity of the EU. The euro coins incorporate high security elements recognizable by machines. The coins can be used in vending machines throughout the euro area, notwithstanding the country of issue. On the coins of € 1 and € 2 has been used sophisticated technology and bimetallic coinage into three layers. The metal coins of 10, 20 and 50 cents is a unique alloy (Nordic gold) difficult to melt and used exclusively for the minting of coins. The legend around the edge of the coin of 2 € and the use of a unique metal composition of coins of 10, 20 and 50 cents protect them against counterfeiting. There are different designs for the common sides of the eight currencies: In those € 2, € 1, 50, 20 and 10 cents appears before the EU enlargement on 1 May 2004 or, from 1 January 2007, a geographical representation of Europe. In those 5, 2 and 1 cent Europe appears to Africa and Asia on a globe.