EURO

FAHMI NUR ALFIYAN

PUNGGI SOEKARNO
RETNO ANGGRAINI
RIZKI DILI YANTI AMIR
ROHMAH WIDYA ASTUTI
TRY SAKTYAWAN

DEPARTEMENT/CLASS : ACCOUNTING / D
LECTURER : SRI WAHYUNINGSIH S.S
 Meaning of EURO

 Euro is the currency used by the Institutions of the European Union and is the

official currency of the eurozone, which consists of 18 of the 28 member
states of the European Union. The euro is the second largest currency as well
as the second most traded currency in the world after the United States
dollar. As of August 2014, with more than €995 billion in circulation, the euro
has the highest combined value of banknotes and coins in circulation in the
world, having surpassed the U.S. dollar.
 History of Euro

If traced back, the Euro is the new demand deposits used since January 1, 1999,
but if it is physically used the new Euro on January 1, 2002. The form of the Euro
in any country look the same, but the difference would we see if we look at the
euro in coins . At Euro form coins have different characteristics behind it. Euro
currency in each country is given its own symbol. Name euro in ISO 4217 is EUR.
There are many countries that use the euro as their official currency. They were
mostly members of the European Union.
 Characteristics
Euro coins and Euro banknotes
Euro Coins :
 There are eight euro coin denominations , ranging from one cent to two euro ( the
euro is divided into one hundred cents ) .
 Coin 1 cent euro
 Coin 2 euro cents
 Coins 5 euro cents
 Coin 10 euro cents
 Coins 20 cents euro
 Coins 50 euro cents
 Coins € 1
 Coin € 2
 Characteristics
Euro coins and Euro banknotes
Euro banknotes :
 5 euro banknotes
 10 euro banknotes
 20 euro banknotes
 50 euro banknotes
 100 euro banknotes
 200 euro banknotes
 500 euro banknotes
 State Users of Euro

which consists of 18 of the 28 member states of the

European Union :
1. Austria, 
2. Belgium, 
3. Cyprus, 
4. Estonia, 
5. Finland, 
6. France,
7. Germany, 
8. Greece, 
 State Users of Euro

11. Ireland, 
12. Italy, 
13. Latvia, 
14. Luxembourg, 
15. Malta,
16. the Netherlands, 
17. Portugal, 
18. Slovakia, 
19. Slovenia, and 
20. Spain.
 Benefits of the Euro

High degree of price stability

 The euro is as stable as the best-performing currencies previously used in the euro area
countries. This has established an environment of price stability in the euro area, exerting a
moderating influence on price and wage-setting. As a consequence, inflation expectations
and inflation risk premia have been kept low and stable. Even in the more challenging
current environment, price stability in the euro area has not been jeopardised.
More price transparency
 Payments can be made with the same money in all countries of the euro area, making
travelling across these countries easier. Price transparency is good for consumers since the
easy comparison of price tags makes it possible for consumers to buy from the cheapest
supplier in the euro area, e.g. cars in different euro area countries. Therefore, price
transparency created by the single currency helps the Eurosystem to keep inflation under
control. Increased competition makes it more likely that available resources will be used in
the most efficient way, spurring intra-euro area trade and thereby supporting employment
and growth.
 Benefits of the Euro

Removal of transaction costs

 The launch of the euro on 1 January 1999 eliminated foreign exchange transaction costs
and thus made possible considerable savings. Within the euro area, there are no longer
any costs arising from:
 buying and selling foreign currencies on the foreign exchange markets;
 protecting oneself against adverse exchange rate movements;
 cross-border payments in foreign currencies, which entail high fees;
 keeping several currency accounts that make account management more difficult.
No exchange rate fluctuations
 With the introduction of the euro, exchange rate fluctuations and therefore foreign
exchange risks within the euro area have also disappeared. In the past, these exchange
rate costs and risks hindered trade and competition across borders.
 Questions

1. What is the meaning of euro ?

2. How much users of euro ? Mention it !
3. Mentioned the currency most frequently traded !
4. Mentioned characteristics of the euro in coins !
5. Mentioned characteristics of the euro in banknotes !
6. When the euro is started to used ?
7. Mentioned 2 benefits from used the euro !
8. Explain about benefits from used the Euro !
9. How much the circulation of the Euro ?
10. What is the impact exchange rate fluctuations ?