• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The Euro.

Extracts from this document...


THE EURO What is the euro? It is the official name of the new currency which will be used by the participants in EMU. The euro is also known as the single currency or the single European currency. The introduction of the euro is just one aspect of EMU, although it will be the most visible sign. While legislation will probably refer to the plural of euro as euro, common parlance will probably refer to euros. What will the sub-unit of the euro be called? The sub-unit of the euro will be the cent. Each euro will have 100 cent. Although common usage may refer to cents or centimes as the plural of cent, the technically correct plural is cent, not cents nor centimes. If the � sign represents sterling, what sign will be used for the euro? European Commission Regulations specify that the euro is officially represented by the symbol . Hence, a reference to 100 euro can also be written as 100. In addition, every currency is provided with a three letter code by a body called the International Standards Organisation. For example, the three letter code for sterling is GBP. The three letter code for the euro is EUR. Hence, 100 euro will often be written in financial circles as EUR100. Many financial institutions will also write 100 euro as euro100, as their computer systems are more easily able to cope with this. Many people will not be able to use the euro symbol for some time as, for example, it is not yet a standard feature of computer software or word processors. It is therefore likely that some people will refer to the euro in writing by using e or E and that 100 euro may often be written as e100 or E100 until computer software with the symbol is readily available. Confusingly, the use of E and e also has particular connotations in computer software applications. ...read more.


convert the Deutsche marks into euro: 10,000 � 1.95583 = 5,112.918811 (b) round the result to three or more decimal places as desired. In this example, the answer of 5,112.918811 above can be rounded up to 5,112.919 (ie three decimal places); (c) convert the rounded amount of 5,112.919 at (b) above into French francs: 5,112.919 x 6.55957 = FF33,538.550084; and (d) this sum can then be rounded down to FF33,538.55 If the conversion into French francs yields a result which is not an exact number of centimes, the result must be rounded up or down to the nearest centime in accordance with European Commission Regulations. If the result is exactly half way, the result must be rounded up. So, in the example, the sum of 33,538.550084 French francs was rounded down to 33,538.55 French francs. Alternatively, 10 euro may convert into 65.5957 French francs, which would then be rounded up to 65.60 French francs. 100 euro would then convert into 655.957 French francs which would be rounded up to 655.96 French francs. The fixed conversion rates must be used when converting between the national currency units. This method of currency conversion is designed to ensure accuracy and consistency of calculation. Conversion between the national currency units and currencies other than the euro (for example, between the French franc and sterling) may be made via the euro in a process similar to triangulation or by working out a cross rate. Conversions between other currencies will be unaffected by the strict conversion and rounding rules for the euro and the national currency units. Will the euro fluctuate/float against sterling? Yes. The euro will be a currency in its own right. If you need to exchange sterling for the euro there will be a fluctuating exchange rate. What will be the value of the euro compared with sterling? As sterling and the euro will fluctuate against each other, the exchange rate between the two currencies will change not just on every business day but throughout every business day. ...read more.


franc and the Comorian franc, replacing on 1 January 1999 the relationships between the CFA and Comorian francs with the French franc. The CFA franc zone includes Benin, Burkina-Faso, Cameroon, the Central African Republic, Chad, the Republic of Congo, Equatorial Guinea, Gabon, Guinea Bissau, Ivory Coast, Mali, Niger, Senegal and Togo. The Comorian franc is used only in the Comores. Currently, there is a fixed parity between the CFA franc and the Comorian franc on the one hand and the French franc on the other. One French franc equals 100 CFA francs and 75 Comorian francs. From 1 January 1999 a new parity with the euro will be introduced; � the French Government (rather than the European Council of Finance Ministers) will soon formalise the parity between the CFP (Change Franc Pacifique) franc and the euro, replacing the existing parity between the CFP franc and the French franc. Currently, one French franc equals 18.18 CFP francs. The CFP franc zone includes French Polynesia, New Caledonia and Wallis and Futuna; � the European Commission is planning to introduce recommendations on the application of the euro to other jurisdictions such as territories associated with Holland and Portugal; � Monaco's legal currency, currently the French franc, will become the euro on 1 January 1999; � the legal currency of the Vatican City will change from the Italian lira to the euro on 1 January 1999; � the euro will also become the legal currency of San Marino on 1 January 1999 in accordance with a bilateral accord between San Marino and Italy. The accord provides for San Marino to have the same currency as Italy. It is not yet known whether San Marino will be able to issue euro; and � although Andorra utilises the French franc and the Spanish peseta as its official currencies, the euro will not become the legal currency of that principality on 1 January 1999. However, discussions are being held on whether Andorra will adopt a convention confirming that the euro will be an official currency of that jurisdiction. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level European Union section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level European Union essays

  1. What does citizenship mean in the European context?

    -- Parliament does suggest some European Peace Corps equivalent -- and for the most part absent altogether. What, then, is the culture, what is the ethos which underlie phrases such as this: [L]'instauration du concept de citoyennet� ... vise � approfondir et rendere plus tangible le sentiment d'appartenance du citoyen

  2. Regulation 2560/2001 on cross-border payments in Europe.

    OJ C 270 E, 25.9.2001, p. 270. (2) Opinion delivered on 10 December 2001 (not yet published in the Official Journal). (3) OJ C 308, 1.11.2001, p. 17. (4) Opinion of the European Parliament of 15 November 2001 (not yet published in the Official Journal), Council Common Position of 7 December 2001 (OJ C 363, 19.12.2001, p.

  1. Transformation of the U.S. Hegemony in Europe through NATO after the Cold War

    initiative that was prepared by Blair and Chirac. Its deadline was set to 2003 and its goal was to have the full capacity of implementing the Petersberg Tasks, including humanitarian tasks, rescue tasks, peacekeeping tasks and also operation capability including peace-making in crisis management.

  2. European Single Currency.

    ask them how the EMU will affect them and their dealings and retailing of Vodafone UK. The EMU should however not affect the much because of the industry they are dealing in; mobile communications because it is a invisible good and cannot be exported or imported (i.e.

  1. Why did many British colonies demand independence from Britain in the years immediately after ...

    countries so manufacturers there would have a large market to sell in even bigger than USA. Britain refused to join the EEC because they still looked on themselves as a world power. But after the EEC was doing well, Britain joined a new group called EFTA, this group was not a success.

  2. The French Revolution

    be raised to try to help the financial instability of the country, but all this did was reduce the conditions of the poorest people even more. There were political factors about the total inequality of class. The peasants had been influenced by the ideas of the Enlightenment thinkers and they were resentful of the aristocracy who gained many privileges.

  1. The Importance of the Cyprus Issue in terms of the Accomplishment of the ESDP

    the strategic calculations with regard to the Eastern Mediterranean and the Middle Eastern regions. The island was also important to not to allow the Soviet Union to have an influence on the issue that might jeopardize the interests of NATO and the USA.

  2. Why is Britain hesitating about membership of EMU and what are the main issues?

    a new idealistic approach to economics devised by the British economist John Maynard Keynes. In 1952, France, Germany, Italy, Belgium, the Netherlands and Luxembourg; later to be confirmed in 1957 by the Treaty of Rome as the European Economic Community, created the European Coal and Steel community.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work