The currency commonly referred to as the “Euro” has a very impressive and important place in the hist
ory of the world’s finances and international markets.
The Introduction of the Euro
The Euro did not come into existence until the late 1990’s, 1999 to be precise, and up until that date the countries of Europe all still had their own currencies that were valued independently and held various values relative to the U.S dollar or other global currencies.
The Euro was to replace the currencies of all the major players of the European Union which meant that it took some time for the event to be finalized, as the concerns of all the member states needed to be fully addressed. It also meant that it would take some time and negotiations to get everybody fully on board.
Only 2 of the many member states decided to keep their local currencies and those were the U.K and Denmark who chose to opt out.
The value of Euro after its launch initially outpaced the value of the U.S dollar by about 0.18 by the end of the first days public trading.
Having a single currency that could be used all across the European Union had many benefits, not the least of which was the ease for world travellers to traverse the continent without having to fret about changing their monies every time they crossed a border. This, of course, would have resulted in fluctuating values of each of the sovereign currencies meaning the tourist would be subject to those fluctuations whether the currency was higher or lower than the previous country.
The value of the Euro has risen and fallen in the intervening years in relation to the U.S dollar, sometimes dramatically higher than at other times.