The Euro
The Euro is the most tangible proof of European integration.
The common currency in 19 out of 28 European Union countries used by over 338.6 million people everyday and the best of the currency are immediately obvious to anyone traveling abroad or shopping online on websites based in another EU country.
Purpose for the establishment of the Euro ๐ถ
A single currency offers many advantage such as eliminating fluctuating exchange rate and exchange costs, because it is easier for companies to conduct cross-border trade and the economy is more stable, the economy grows and consumer have more choices.
A common currency also encourage people to travel and shop in other countries at global and international level. The Euro gives EU more clout. as it's the second most important international currency in the world after the United States Dollar ๐ต
Getting to know the Euro๐ถ
Aside from being dubbed the anti-dollar, the Euro is also nicknamed "Fibre".Some say that this nickname was derived from the trans-Atlantic traders.
The Euro popularly known as the anti-dollar, EUR/USD is the most actively traded currency pair in the foreign exchange market "FOREX" ( forex traders knows better )
The European Union (EU)
The European Union countries revolved within the magical powers of the Treaty of Maastricht, It then grew into a large economic and political bloc, Making it the largest economic region in the world.
Talking about playing a huge role in the international trade and global economic affairs;
Among the EU members states, 19 adoption countries adopted the Euro (EUR) as their common currency.
The nations that comprise the Euro zones, which may also be called the European Monetary Union (EMU) or Euroland.
Members of these Elite club are as follows:
- Germany
- France
- Finland
- Estonia
- Cyprus
- Ireland
- Italy
- Belgium
- Latvia
- Austria
- Lithuania
- Spain
- Slovenia
- Portugal
- Luxembourg
- Malta
- Slovakia
- Netherlands
- Greece
Aside from adopting a common currency, these nations also share the same monetary policy set by the European Central Bank (ECB) and the Euro was launched on the 1of January 1999 as a virtual currency for cash-less payments and accounting purposes.
Economic Overview of the Euro Zone
The Euro zones which comprises more than half of the nations in the EU, rank as the largest economy with a GDP of $18.45 trillion in 2011. Being a service account for a whopping 70% of its GDP.
The euro zone takes pride in being the second most attractive investment market for domestic and international investors.
As an economic union, the Euro zone has a standardized system of laws,particularly for trade. The size of their entire economy makes the Euro zone a major player in the international trade arena.
Because the individual countries are grouped as one entity, it enables them to facilitate trade easier, mostly with its number one trade partner, The US.
The native participate in international trade also have a significant impact on the role of the EUR as a reserve currency .
Finally because countries who transact with the Euro needs to have a significant amount of reserved currencies in other to reduce exchange rate risk and minimize transaction cost.
Monetary And Fiscal Policies
The European Central Bank (ECB) act as the governing body for the monetary policies of the EU led by current ECB president Mario Draghi the executive board also consist of the ECB vice president and four other policy makers.
Along with the top guns from the National Central Bank within the Euro zones ,they make up the ECB governing council who vote on monetary policy changes.
Conclusively, the main objective of the ECB is to maintain price stability in the entire region.
Important Economic Indicators for the euro
- Gross Domestic Product
- Employment Change
- Consumers Price Index
- German IFO Business Climate Survey
- Budget Deficits
- German Industrial Production
Great thanks to all steemians who viewed this great economic facts about the Euro, The are high hopes that you must have learnt something you never knew about the Euro,the Euro zones and the European Union. The next episode on my Economic Hard Facts will be an exploration of the things you need to know about the (GBP) The Great Britain Pound or Sterling. Please upvote, comment and resteem if you find these article useful
