Euro to US dollar exchange rate
As of today, 18 member states of the European Union have been using this single currency. Convert Euro to USD and live exchange rates below.
Live exchange rate Euro - USD
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Everything You Need to Know about the Euro
The Euro currency was originally launched on January 1, 1999 as a currency used for accounting functions. Its history has begun since the European Union accepted the Maastricht Treaty. The introduction of the euro can be considered as one of the excellent steps done for European integration. It can also be considered as one major success for the European Union. These days, over 333 million citizens of the EU use the euro as their currency. The benefits of using the euro will spread throughout a wider population as other countries in EU start adopting the use of the currency.
The Euro became the official currency of 11 Member States of the EU in January 1, 1999. It replaced the original national currencies, which include the French franc and the Deutsch mark. However, the old currencies were still used as a mode of cash payment as the euro only functions as an accounting currency used for cash-less payments. On January 1, 2002, the physical forms of the euro such as coins and banknotes have been widely circulated. However, it is still not the official currency of all the countries that belong in the EU. The United Kingdom and Denmark did not accept the Maastricht Treaty, which exempts them from using the euro. On the other hand, the new members of the EU still have to meet the requirements in order for them to adopt the use of the euro. In 1999, member states, which include Belgium, Ireland, Germany, France, Spain, Luxembourg, Italy, Finland, Portugal, Austria and the Netherlands, have adopted the euro. In 2001, Greece also adopted the currency. Slovenia used the currency since 2007, while Cyprus and Malta decided to use it in 2008. Slovakia also opted for the use of the currency in 2009, while Estonia adopted in2011. The most recent to adopt the euro is Latvia in 2014.
Nowadays, a lot of sovereign territories, which do not belong to the European also use the euro. Perhaps this is because of the excellent euro exchange rate. The Republic of San Marino, the Principality of Monaco and the Principality of Andorra adopt this currency. In addition, many departments and sovereign states of Euro-zone countries, such as Miquelon, Saint Pierre, Saint Martin, Reunion, Mayotte, Martinique, the Madeira Islands, Juan de Nova, Guadeloupe, French Guiana, Europa Island, the Canary Islands, Balearic Islands and the Azores use the currency. In addition, the euro is used as a trading currency is Syria, North Korea, Cuba and other currencies are pegged to it. The euro to dollar and the euro to pound rates are truly excellent that is why a lot of counties and territories use this currency.
The Euro Crisis
The divergence from the old criteria when participating in the European Economic and Monetary Union (EMU) is one of the major problems associated with the euro. Debt is considered as the most problematic issue to resolve when it comes to the use of the currency. The original criterion in terms of debt is at the maximum of 60% ratio to gross domestic product or GDP. Some countries reach a ratio of 100% debt-to-GDP. In this case, all countries that use the currency are affected. The euro exchange rate is also affected when these countries fail to comply with the regulations. For instance, the euro to dollar rate can decrease so as with the euro to pound exchange.
This contradicts the agreement between the EU Member States and the EMU that states to increase borrowing limits with the assumption that the increase could be useful for advancing the specific needs of each country. Debt can be compared to a double-edged sword that has a power to provide many benefits when used properly. For instance, Italy was able to take advantage of its increased borrowing limits to improve not only its national standard of living but also its national level of education to be able to compete efficiently in the worldwide economy. However, this achievement has resulted to a serious financial cost for a significant period. Hence, it may cause Italy to redesign, restructure or default on its debt.
The euro absolutely helps to improve stability among member countries. On the other hand, it also creates problems when it comes to the interest rates of debts and high deficit levels. This is one of the major problems encountered by EU countries like Germany. The interest rate has been taken away by the euro as an excellent tool of the fiscal policy. This means that when the local economy weakens, the local government cannot make the interest rates go lower in order to stimulate growth and development. Debt can definitely cast a shadow on the euro when it comes to the value of the currency. The agreement that states to increase the borrowing limits of all member states that focus on simplifying the entire process seems to deliver a reverse effect. You will even wonder how or why different countries, with different histories, customs and languages can share a single currency that is expected to age and progress at a similar rate.
Euro to USD dollar
The euro had a ratio of 1:1 with the U.S. dollar during its first years. At that time, all original currencies of the countries in the EU were abolished, leaving the euro afloat with other major currencies. There are times that the euro becomes volatile, but the value of this currency continuously to increase over the years. In fact, the euro to dollar exchange is in favor of the former most of the time as the latter weakens annually. The same thing can happen with the euro to pound trading when the deficit levels of the EU countries will decrease. Since the crisis in 2008, the euro’s volatility continued but the general outcome has been a higher value of euro compared to other currencies, even deficit and debt levels are high. The euro exchange rate is considerably one of the strongest in the global economy.
History of the Euro
The evolution of the European Union and ultimately the history of the euro have been highly advantageous for the most population. However, the debate still goes on as to whether the use of a single currency for some parts of the European Union is an excellent idea or not. The European Union Member States have the power to increase their borrowing limits but they should also be aware of possible negative outcome. They can surely borrow more money at low rates that they can use for growth and development, but they should also be prepared to pay the price. The euro exchange rate has been strong since it has been widely circulated. It was considered as one of the safest currencies even during the banking crisis, while investors turned away from the U.S. dollar. As you should know, a strong currency is seldom as good as the way it sounds. There are times when it can make your goods for export more expensive. It can also create trade imbalances that cannot combine accordingly with ever-increasing debt and deficit levels.
The euro is considered as one of the strongest currencies in the entire world. It is the one of the most attractive sounding and looking currencies that provides a lot of benefits to its users. It has a high value most of the time over the past years. However, you never know that its grand design can fade away after over some years to go. Only time can tell the fate of this currency.