The Euro is ... The Euro of the CBR

The Euro is one of the most popular and expensive currencies in the world. With its help, payment transactions are made in the euro area. If we calculate, about 300 million people use the euro daily, and the volume of bills in circulation is faster than American dollars.

The emergence of the euro as a currency

His birth is at the beginning of 1999. Then it was possible only non-cash payment, but after 3 years there were also cash bills.

The Council of European Central Banks has since controlled the issue of paper banknotes and coins, all payment transactions, the spread of currency outside the eurozone. But the most important task is to maintain the course at a high level.

In January and February 2002, all previous national currencies were to be replaced by euros at a fixed rate. At the moment, cash settlements in euros are made only in the euro area. To further spread the country with this national currency should join EMR-2 (European financial exchange mechanism). But whether the remaining EU countries become participants of EMR-2 or not, it will be known only in 2019.

Coins and banknotes

In circulation are coins worth 1 and 2 euros. Since 1 euro is 100 euro cents, coins are also issued 0.5, 0.2 and even 0.01.

Paper money and coins are issued not only in the European central bank, but also in the national banks of the countries of the European Union. Here for banknotes there are strict requirements to the format, color and density of paper, but for coins an exception is made - it is possible to create a specific design on the reverse. Most countries of the euro area depict on the reverse of national motives, reflecting the history of the state. The front part of the coin is always executed according to the standard, and the picture on it is declared. Stamping Euro cents is not always done. So, for example, in Austria there is no price adjustment, so the demand for 0.05 and 1 euro cents is constant. Pricing in many other EU countries, on the other hand, leads to completely getting rid of the small denomination.

Paper euros also have their own peculiarities: 200 and 500 euros is a denomination that is considered inexpedient in cash. Printing such notes is carried out in certain banks, but they must recognize within the whole of the entire euro area. Denominations of nominal value from 5 to 100 are in daily turnover in all European countries and are considered a state means for payment transactions.

How did the symbol €

Until now, the full picture of the creation of the symbol denoting the euro is unclear. According to one of the most popular versions, a group of 4 specialists developed this symbol as a result of conducting social studies, as well as developing a variety of image variations. After that, the Greek letter "epsilon" was taken as a basis, which is crossed by two parallel lines symbolizing the stability of the currency. But often the veracity of this version is questioned, because the names of these socialists are still unknown.

At the same time, his copyright is trying to protect Arthur Eisenmenger, arguing that it was he who created this symbol. Which version is historically accurate, is still unknown.

The symbol € is also fixed in the national standard, where its dimensions, requirements for the image of corners and lines are determined. The denominations are also protected by an individual serial number, where the first letter indicates the state in which the banknote was printed.

Reserve currency

Before the emergence of € reserve currencies were the francs and German brands. To date, the euro is the second reserve currency, which occupies 30% of the world foreign exchange market.

Contrary to all fears, the European Union accepted € as a single currency and sees prospects in its development to take an even larger share in the currency basket.

Exchange rate

The ratio of different currencies to each other is due to several factors:

1. Inflation is the most unpleasant phenomenon, which directly reduces the euro rate of the Central Bank to the ruble and dollar exchange rates. In other words, inflation eats up the value of money.
2. The balance of payments of the state, in which the demand for foreign currencies significantly reduces the value of national capital.
3. Demand for currency in international settlement transactions. As soon as the supply exceeds the demand, for example, the euro / ruble rate is decreasing.
4. Trust of people and organizations: it is important here, in which banknotes they prefer to save and multiply their budget.
5. The interest rate on the euro, the dollar and the ruble in different countries.
6. Foreign exchange policy in these countries.

Course and its formation

It is impossible to accurately predict the course of the euro of the Central Bank, because a huge influence on it is provided by political and economic stability in relations between countries. If the situation in the world is calm, then the fluctuations are short-lived and insignificant.

The formation of the value of the currency begins with the results of international trade, where they sell and buy export goods. As a result, the euro to ruble rate, for example, will show the ratio of the purchasing power of the European currency to the Russian one. This phenomenon is called a real exchange rate, but apart from it there is also an exchange rate. On it the bank lets the currency to its customers.

The decision on what will be the euro against the dollar, is accepted by the European Central Bank. The Central Bank does not directly participate in the growth or fall of the value of the euro, but tries to smooth out the sharp jumps in the price dynamics.

The main reference point is the bi-currency basket, which includes 45 euro cents and 55 American cents.

On this basis, the European Central Bank fixes the euro to the dollar rate taking into account market quotations on the domestic foreign exchange market.

Every day, except for Saturday and Sunday, the euro exchange rates are set against the dollar and the ruble. Buying and selling it for individuals and individuals is carried out at this price until the following changes take effect.

Updated banknote of EUR 10

In 2014, the European Central Bank introduced an updated denomination of 10 euros. Changes have not touched the color scale and the main image on the reverse side (stone bridge). The main thing is protection against forgery. Although extremely rare counterfeit banknotes of this denomination, but the European Central Bank still decided to replace them with more modern and secure ones.

Ten changes in ten euros? The introduction of a watermark, a protective strip in the center of the bill, an increase in the number 10 on the left of the banknote and on the reverse side and its staining in holographic emerald-blue colors, the inscription "ECB" translated into 9 languages, and the name "EURO" in Cyrillic. The surface of the banknote is treated with a special composition, which increases its resistance to mechanical stress.