Discovering Peculiarities of Euro Forex Currency
Euro on Forex (currency sign - â‚¬, banking code: EUR) - the official currency of 16 countries' of the so-called Eurozone
Euro as Forex currency was introduced the world's financial markets as a currency of account in 1999 as a replacement for the former European Currency Unit - ECU. 1 January 2002 were entered in the cash banknotes and coins.
Euro Forex currency is the currency of 13 EU Member States and the second currency in the world for number of transactions, the dollar remains the currency of international reference. In December 2006, Euro Forex currency became the first currency in the world for the amount of banknotes in circulation. It represents 37% of transactions on the foreign exchange market.
On 1 January 2008 Cyprus and Malta also joined the euro area, Slovakia in 2009 and in 2010 are expected arrivals of Lithuania, Bulgaria, Estonia and Latvia, the Czech Republic in 2012 and 2013, also Hungary and Romania.
The transition to the single currency was achieved apart from the beginning of 1999, with financial markets that have gone to the euro: the foreign exchange market, stock markets, debt, etc. Then there was the dual circulation of coins.
Joining the Eurozone is not so easy, since there are constraints that countries wishing to join must meet. In particular, we see a deficit below 3% of GDP, public debt not exceeding 60% of GDP, low inflation and full independence of the country's central bank, in addition to the stability of national currency.
The euro is intended to help and promote cohesion among the states, through a single currency and common economic policies among the different EU countries. Recently, our currency has been in the eye to the financial problems of Greece, close to default, as well as those of other states, like Spain and Portugal.
The euro was designed as the leading currency exchange rates for the formation, by analogy with the U.S. dollar. Like the U.S. dollar, Euro Forex currency has a strong international support provided by the countries - members of the European Monetary Union. This currency is exposed but the negative influence of the uneven development of these countries, high levels of unemployment in some of them and the unwillingness of some governments to pursue structural reforms. In 1999 and 2000 euro/dollar rate is also changed due to the outflow of foreign investors, particularly Japanese, forced to liquidate unprofitable deposits of euro Forex accounts. In addition, European financiers to review their portfolios in the direction of reducing the influence of euro Forex currency due to a decrease in willingness to use the European currency in order to minimize risk in foreign exchange transactions.
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