Currency and Central Banks
The most common currency within Europe is the euro, the currency of the European Union. To join, each new EU member must meet certain criteria, when these are met their own currencies will be replaced by the euro. Becoming a member of the EU involves a pledge to work towards Eurozone membership, (except in the cases of the United Kingdom and Denmark who have opt-outs). Currently, 16 of the 27 EU member states use the euro. Each EU member's central bank is part of the European System of Central Banks, and in addition, those that use the euro are part of the European Union's central bank, the European Central Bank.
There are some non-EU members who have elected to use the euro as their national currency, either with or without specific agreements with the EU to do so, (those with agreements with the EU may mint their own euro coins). The French overseas territories and departments of Mayotte and Réunion in the Indian Ocean, Guadeloupe and Martinique in the Caribbean and French Guiana in South America all use the euro, among many other islands in the Pacific, Caribbean and indeed around the globe that are ruled directly by European countries.
Some countries while maintaining their own national currency have pegged its value to the euro. In some of these countries, there is a fixed exchange rate between the national currency and the euro and in this case the currency is actually a submultiple of the euro. In other countries, the national currency's value fluctuates within a band (generally 15%) around a set rate. Currencies pegged to the euro include the currencies of Bulgaria, Lithuania, Bosnia and Herzegovina and Cape Verde. Denmark & Latvia have a foreign exchange band tied to the euro.
The CIS is also planning to introduce a single currency among its members.
Below is a list of the central banks and currencies of Europe, with exchange rates between each currency and both the euro and US dollars as of 1 May 2010.
| Country | Currency | Value in Euro | Value in USD | Central Bank |
|---|---|---|---|---|
| Albania | Lek | 0.007 | 0.009 | Bank of Albania |
| Andorra | Euro | — | 1.33 | (none de jure)/ECB de facto |
| Armenia | Dram | 0.002 | 0.003 | Central Bank of Armenia |
| Austria | Euro | — | 1.33 | National Bank of Austria/ECB |
| Azerbaijan | Manat | 0.94 | 1.25 | Central Bank of Azerbaijan |
| Belarus | Belarusian ruble | 0.0003 | 0.0003 | National Bank of the Republic of Belarus |
| Belgium | Euro | — | 1.33 | National Bank of Belgium/ECB |
| Bosnia and Herzegovina | Konvertibilna marka | 0.51 | 0.68 | Central Bank of Bosnia and Herzegovina |
| Bulgaria | Lev | 0.51 | 0.68 | Bulgarian National Bank |
| Croatia | Kuna | 0.14 | 0.18 | Croatian National Bank |
| Cyprus | Euro | — | 1.33 | Central Bank of Cyprus/ECB |
| Czech Republic | Koruna | 0.04 | 0.05 | Czech National Bank |
| Denmark | Danish krone | 0.1 | 0.2 | Danmarks Nationalbank |
| Estonia | Euro | — | 1.33 | Bank of Estonia/ECB |
| Finland | Euro | — | 1.33 | Bank of Finland/ECB |
| France | Euro | — | 1.33 | Banque de France/ECB |
| Georgia | Lari | 0.4 | 0.5 | National Bank of Georgia |
| Germany | Euro | — | 1.33 | Deutsche Bundesbank/ECB |
| Greece | Euro | — | 1.33 | Bank of Greece/ECB |
| Hungary | Forint | 0.004 | 0.005 | Hungarian National Bank |
| Iceland | Króna | 0.01 | 0.02 | Central Bank of Iceland |
| Ireland | Euro | — | 1.33 | Central Bank of Ireland/ECB |
| Italy | Euro | — | 1.33 | Banca d'Italia/ECB |
| Latvia | Lats | 1.5 | 1.9 | National Bank of Latvia |
| Liechtenstein | Swiss franc | 0.7 | 0.9 | (none de jure)/Swiss National Bank de facto |
| Lithuania | Litas | 0.29 | 0.35 | Bank of Lithuania |
| Luxembourg | Euro | — | 1.33 | Central Bank of Luxembourg/ECB |
| Macedonia | Denar | 0.02 | 0.02 | National Bank of the Republic of Macedonia |
| Malta | Euro | — | 1.33 | Central Bank of Malta/ECB |
| Moldova | Moldovan leu | 0.06 | 0.08 | National Bank of Moldova |
| Monaco | Euro | — | 1.33 | (none de jure)/ECB de facto |
| Montenegro | Euro | — | 1.33 | Central Bank of Montenegro de jure/ECB de facto |
| Netherlands | Euro | — | 1.33 | De Nederlandsche Bank/ECB |
| Norway | Norwegian krone | 0.1 | 0.2 | Norges Bank |
| Poland | Złoty | 0.26 | 0.35 | National Bank of Poland |
| Portugal | Euro | — | 1.33 | Banco de Portugal/ECB |
| Romania | Romanian leu | 0.29 | 0.35 | National Bank of Romania |
| Russia | Russian ruble | 0.03 | 0.03 | Central Bank of the Russian Federation |
| San Marino | Euro | — | 1.33 | Central Bank of San Marino de jure/ECB de facto |
| Serbia | Dinar | 0.01 | 0.02 | National Bank of Serbia |
| Slovakia | Euro | — | 1.33 | National Bank of Slovakia/ECB |
| Slovenia | Euro | — | 1.33 | Bank of Slovenia/ECB |
| Spain | Euro | — | 1.33 | Bank of Spain/ECB |
| Sweden | Swedish krona | 0.1 | 0.2 | Sveriges Riksbank |
| Switzerland | Swiss franc | 0.7 | 0.9 | Swiss National Bank |
| Turkey | Lira | 0.5 | 0.7 | Central Bank of the Republic of Turkey |
| Ukraine | Hryvnia | 0.2 | 0.2 | National Bank of Ukraine |
| United Kingdom | Pound sterling | 1.17 | 1.61 | Bank of England |
| Vatican City | Euro | — | 1.33 | (none de jure)/ ECB de facto |
Table as of 21 November 2010.
Read more about this topic: Economy Of Europe
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