Launch History of the euro

eurozone, 1999–2002

the currency introduced in non-physical form (traveller s cheques, electronic transfers, banking, etc.) @ midnight on 1 january 1999, when national currencies of participating countries (the eurozone) ceased exist independently in exchange rates locked @ fixed rates against each other, making them mere non-decimal subdivisions of euro. euro became successor european currency unit (ecu). notes , coins old currencies, however, continued used legal tender until new notes , coins introduced on 1 january 2002 (having been distributed in small amounts in previous december). beginning on 1 january 1999, bonds , other forms of government debt eurozone nations denominated in euros.

the value of euro, started @ usd 1.1686 on 31 december 1998, rose during first day of trading, monday, 4 january 1999, closing @ approximately usd 1.18. rapidly taken , dealers surprised speed @ replaced national currencies. trading in deutsche mark expected continue in parallel vanished markets opened. however, end of 1999 euro had dropped parity dollar leading emergency action g7 support euro in 2001.

later in 2000, denmark held referendum on whether abandon opt-out euro. referendum resulted in decision retain krone, , set plans referendum in uk result. procedure used fix irrevocable conversion rate of 340.750 between greek drachma , euro different, since euro 2 years old. while conversion rates initial eleven currencies determined hours before euro introduced virtual currency, conversion rate greek drachma fixed several months beforehand, in council regulation 1478/2000 (ec), of 19 june 2000.