European Monetary Unit: The Euro
You certainly have heard about the new European Monetary Unit, also known as
the Euro. The European Monetary Union (or "Euroland") consists of twelve EU
members: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy,
Luxembourg, Netherlands, Portugal, Spain. There are three EU members who have
not adopted the Euro: the UK, Sweden and Denmark.
The Euro is a common currency for all members of Euroland. Just as we can use
the same dollar bill in New York as well as Los Angeles, Europeans and visitors
can pay for goods in the same Euro, all over Euroland. Tourists traveling wholly
within Euroland are able to carry one set of currency, instead of having to
change money at every border. This common currency started Jan 1, 2002.
Local currency (DM, FF, lira, etc) is no longer accepted in any retail
establishment in Euroland. If you have local currency left over from previous
trips, the only place where you can exchange it will be the national central
banks in the respective countries. Many local banks will not exchange the old
national currencies as their own retail customers completed this process long
ago.
You may have difficulty finding any commercial bank or exchange office
in the US that will exchange the old national currencies for any price.
Bear in mind that not all European Union members are members of the European
Monetary Union. Great Britain, Denmark and Sweden are EU members but still use
their own local currency. Nations such as Norway and Switzerland as well as
countries in Eastern Europe are not members of the European Union at all and use
their own local currency.
What does this mean to Americans planning trips to Europe?
Make a note of which countries you plan to visit are in Euroland and which are
not. If your travel plans involve countries outside Euroland, you will have to
get a separate set of currency for them. Don't throw away your multi-sectioned
wallet quite yet!
For Americans, prices in Euros are relatively easy to convert to US Dollars, as
the value of the Euro is approximately equal to a dollar. Mind that word
"approximately". The relative strength of the Euro and the Dollar varies with
time!! However, when you see a price in Euros, you can figure it is
approximately the same in dollars, give or take a small fudge factor. You can
also compare prices across national borders.
There are some who confuse the Euro with "EuroDollars". EuroDollars are
not Euros! "EuroDollars" are US dollars held by Europeans. Numbers of
European banks and financial institutions hold US dollars, just as American
banks and financial institutions hold, for instance, British pounds.
You can get more information about the Euro, conversion rates and pictures
from the European Central Bank
website. Check it out before you leave, and be prepared.
Our thanks to Christian Feldhaus of Düsseldorf, Germany, for providing
this information on the Euro.
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08/09/2003 |
