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The euro (currency sign: €; banking code: EUR) is the official currency of the European states of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Slovenia and Spain - also known as the Eurozone - and is the single currency for more than 317 million people in Europe. Including areas using currencies pegged to the euro, the euro affects more than 480 million people worldwide, with more than €610 billion in circulation as of December 2006.
However, it is not \"the currency of the European Union\" as not all EU members have adopted the currency. While all nations which have recently joined the EU are pledged to adopt the euro in due course, the United Kingdom and Denmark are under no such obligation. Several small European states (Vatican City, Monaco, San Marino,and Andorra), although not formally EU members, have adopted the euro due to currency unions with member states.
The euro was introduced to world financial markets as an accounting currency in 1999 and launched as physical coins and banknotes in 2002. All EU member states are eligible to join if they comply with certain monetary requirements.
The euro is managed and administered by the Frankfurt-based European Central Bank (ECB) and the European System of Central Banks (ESCB) (composed of the central banks of its member states). As an independent central bank, the ECB has sole authority to set monetary policy. The ESCB participates in the printing, minting and distribution of notes and coins in all member states, and the operation of the Eurozone payment systems.
Characteristics of the euro
Coins and banknotes
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The euro is divided into 100 cents (sometimes referred to as eurocents). All euro coins (including the €2 commemorative coins) have a common side showing the denomination (value) with the EU-countries in the background and a national side showing an image specifically chosen by the country that issued the coin. Euro coins from any country may be freely used in any nation which has adopted the euro.
The euro coins are €2, €1, 50c, 20c, 10c, 5c, 2c and 1c. The two smallest denominations are no longer struck (except for collectors) in the Netherlands or Finland, where cash transactions are rounded to the nearest five cents, but they remain legal tender there.
Read more at Wikipedia.org
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