EURO

The euro is the common currency of the euro area, used by 20 European Union member states. It is issued and regulated by the Eurosystem, which comprises the European Central Bank and the national central banks of euro-area countries. The euro facilitates cross-border trade, price transparency, and financial integration, and it is one of the world's leading reserve currencies.

The euro was introduced in 1999 as a virtual currency for accounting and electronic payments; euro banknotes and coins entered circulation on January 1, 2002, replacing most national currencies such as the Deutsche Mark and the French franc. The symbol € was adopted for the currency and is widely recognized in international finance.

Banknotes are issued in denominations of 5, 10, 20, 50, 100, 200 and 500 euros, though the production of the 500 euro note ceased in 2019 and is being gradually withdrawn from use by some institutions; the note remains legal tender where accepted. Coins come in 1, 2, 5, 10, 20 and 50 cent, along with 1 and 2 euro denominations.

Not all EU states use the euro; those that do not retain their own currencies and may seek euro adoption after meeting convergence criteria and participating in ERM II, the exchange-rate mechanism.

Monetary policy aims to maintain price stability, with an inflation target just below 2%. The ECB sets policy for the euro area; national central banks implement policy and manage cash issuance and circulation.

The euro is widely used in international finance and is held as a major reserve currency by many central banks outside the euro area.