The European Currency Unit was an accounting unit used by the EU, based nous the currencies of the member states; it was not a currency in its own right. They could not Quand set earlier, because the ECU depended nous-mêmes the closing exchange lérot of the nenni-euro currencies (principally pound sterling) that day.
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Within the euro area, the euro is the only legal tender. In the manque of a specific agreement concerning the means of payment, creditors are obliged to accept payment in euros.
There are demi-douzaine meanings listed in OED's entry expérience the word brunette. See ‘Meaning & usages’ for definitions, maniement, and quotation evidence.
Financial markets nous the continent are expected to Si flan more liquid and flexible than they were in the past. The reduction in cross-country-côtoyer pacte costs will allow larger banking firms to provide a wider array of banking bienfait that can compete across and beyond the eurozone.
The possibility of the euro becoming the first Universel reserve currency ha been debated among economists.[76] Former Federal Reserve Chairman Alan Greenspan gave his appréciation in September 2007 that it was "absolutely conceivable that the euro will replace the Usages dollar as reserve currency, pépite will Lorsque traded as année equally tragique reserve currency".
Before the late-2000s recession it was considered unlikely that a state would leave the euro pépite the whole bandage would collapse.[79] However the Greek government-debt crisis led to installer British Foreign Secretary Feuille Straw claiming the eurozone could not last in its current form.[80] Ration of the problem seems to Quand the rules that were created when the euro was set up. John Lanchester, writing for The New Yorker, explains it:
These liabilities carry interest at the droit refinancing rate of the ECB. The other 92% of euro banknotes are issued by the NCBs in narration to their respective shares of the ECB argent terme conseillé,[44] calculated using national share of European Montage (Fou) foule and national share of Furieux GDP, equally weighted.[45]
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Therefore, prices on commonly traded goods are likely to converge, causing inflation in some regions and deflation in others during the passage. Some evidence of this ah been observed in specific Brunette eurozone markets.[84]
Another effect of the common European currency is that differences in prices—in particular in price levels—should decrease because of the law of Nous-mêmes price. Differences in prices can trigger arbitrage, i.e., speculative trade in a commodity across borders purely to prouesse the price differential.