Nations which use the euro

At first, the euro was used in trades between banks and tracked alongside the countries' currencies. Banknotes and coins came out a few years later for the public to use in everyday transactions. Residents of the first European Union countries that adopted the euro began using the banknotes and coins on January 1, People had to use up all their cash in the countries' old paper money and coinage before mid-year that year, when they would no longer be accepted in monetary transactions and the euro would be used exclusively.

Euros are divided into euro cents, each euro cent consisting of one one-hundredth of a euro. The euro is one of the world's most powerful currencies, used by more than million Europeans in 19 of 28 EU member countries , as well as some countries that are not formally members of the EU.

Countries currently using the euro:. Territories that use the euro:. Countries that do not use the euro, but are part of the Single Euro Payments Area, which allows simplified bank transfers:.

On January 1, , Slovakia started using the euro, and Estonia began using it on January 1, Latvia joined in on January 1, , and Lithuania began using the euro January 1, New EU member countries are working toward becoming part of the eurozone. Romania planned to start using the currency in , and Croatia planned to adopt it in Countries' economies are evaluated every two years to see if they're strong enough to adopt the euro, using figures such as interest rates, inflation, exchange rates , gross domestic product, and government debt.

The EU takes these measures of economic stability to evaluate whether a new eurozone country would be less likely to need a fiscal stimulus or bailout after joining. The financial crisis in and its fallout, such as the controversy of whether Greece should be bailed out or leave the eurozone, put some strain on the EU. Great Britain and Denmark are the two countries that, as part of the EU, opted out of adopting the currency.

Great Britain even voted to leave the European Union in the Brexit vote in , so as of , the currency issue looked to be a moot point. The pound sterling is a major currency in the world, so leaders didn't see the need to adopt anything else at the time the euro was created.

Countries that don't use the euro maintain the independence of their economies, such as the ability to set their own interest rates and other monetary policies; the flip side is that they must manage their own financial crises and can't go to the European Central Bank for assistance. However, not having an economy interdependent with those of other countries might make some sense.

The countries that opted-out of the euro could be more nimble in dealing with a widespread crisis that affects countries differently, such in the case of Greece in — It took years for bailouts of Greece to be decided upon, for example, and Greece couldn't set its own policies or take its own measures. A hot-button issue at the time was whether bankrupt Greece was going to stay in the eurozone or bring back its currency.

Denmark doesn't use the euro but has its currency, the krone, tied to the euro to maintain the country's economic stability and predictability and to avoid major fluctuations and market speculation on its currency. It is pegged within a 2. The dollar has historically been used as a common currency internationally, just like English has been a common language between people of different countries.

Foreign countries and investors see U. Treasury bonds as safe places to put their money because of a stable government behind the dollar; some countries even hold their financial reserves in dollars. The currency also has size and liquidity, which are needed to be a major world player.

When the euro was first established, the exchange rate was set based on the European Currency Unit, which was based on a collection of European currencies. It generally runs a little higher than the dollar. Its historical low was 0. Professor Steve Hanke, writing in Forbes in , postulated that setting an exchange rate "zone of stability" formally between the euro and dollar would keep the entire global market stable because of the prolonged recession that happened worldwide following the collapse of Lehman Brothers.

Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. A total of 19 member states and a handful of EU territories use this form of currency.

Other nations throughout Europe also use the euro. The euro is the second-largest and second most traded currency globally, falling only behind the United States dollar. Each euro is made up of cents. The European Central Bank issues the euro.

Euros and cents are available as banknotes and coins. Denominations of 5, 10, 20, 50, and euro are frequently used. Less frequently used are and euro banknotes. Coins that are commonly used in nations that use this currency are 1 cent, 2 cents, 5 cents, 10 cents, 20 cents, 50 cents, 1 euro, and 2 euro.

The euro is the official currency of 19 member states of the European Union. This group of states is known as the eurozone. Approximately million people live within this region.