The
euro (€) is the official currency of 16 of the 27
member states of the European Union (EU). The states,
known collectively as the Eurozone, are: Austria,
Belgium, Cyprus, Finland, France, Germany, Greece,
Ireland, Italy, Luxembourg, Malta, the Netherlands,
Portugal, Slovakia, Slovenia, and Spain. The currency
is also used in a further five European countries,
with and without formal agreements and is consequently
used daily by some 327 million Europeans.[2] Over
175 million people worldwide use currencies which
are pegged to the euro, including more than 150
million people in Africa.
The euro is the second largest reserve currency
and the second most traded currency in the world
after the U.S. dollar.[3] As of November 2008[update],
with more than €751 billion in circulation, the
euro is the currency with the highest combined value
of cash in circulation in the world, having surpassed
the U.S. dollar.[4][5] Based on IMF estimates of
2008 GDP and purchasing power parity among the various
currencies, the Eurozone is the second largest economy
in the world.[6]
The name euro was officially adopted on 16 December
1995.[7] 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. Euro coins and banknotes entered
circulation on 1 January 2002.
