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The European Union created a single monetary unit to replace the national currencies of twelve member nations This new common currency is known as the?
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∙ 6y ago
The Euro.
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∙ 6y ago
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What currency replaced most kinds of money in 2002?
No currency replaced "most" money in 2002. The euro was introduced that year and replaced the old national currencies of a dozen states in the EU, but that left untouched about 180 other national currencies in use around the world.
WHAT currency is made by IMF?
The IMF doesn't issue currency and is not a bank. It's a supra-national organization of nearly 200 countries that provides a venue for international action on monetary policy and trade.
What is the difference between a fiat currency and a gold-backed currency?
Fiat currency is based on faith that it is worth something, much like an IOU. If the authority printing that currency has good credit, the currency will be worth more, and the opposite is true, as well. Gold-backed currency is just that: currency which represents the exact value of gold printed on it. So, a $1 treasury note = $1 in gold. Traditionally, with a gold-backed currency, you, the holder of that note, would be able to go down to your local bank and exchange that note for the same amount of gold. In short, with a fiat currency, everyone agrees that it's worth that amount, and it is subject to national credit ratings. With a metal-standard currency, the currency is based on the price and value of a particular metal, like gold. There are currently no gold-backed currencies. Every currency in the world is a fiat currency.
What is the national currency of Prague?
Czech koruna
What is the Gold Standard?
The basing of a currency on gold. In some sense in such a system, gold IS the currency and money is a symbol for a corresponding amount of gold, backed by the issuer - i.e. the bank promises that by some means you are always able to exchange X of its currency for Y gold, and vice versa. No country still uses the gold standard - modern currencies are free floating with their value determined by local markets and exchange rates with other currencies. Even so, national governments still usually carry large gold reserves as a holdover from the time when they needed them as a physical guarantee. Gold has remained valuable over thousands of years so it can always be sold as needed for any currency (including its own) that a country might need, or bought to safely store wealth. A currency system in which each dollar is worth 1/20 of an ounce of gold (gradpoint)
What was name of the euro in the past?
The Euro is a shortened version of European Currency Unit. The ECU was agreed by the European Monetary System (EMS) IN 1978 to stabilize exchange rates and thus encourage intra-EU trade. It started off as a parallel currency for all participating national currencies and the Exchange Rate Mechanism which fixed the exchange rates between currencies
What is the Asian national currency?
There is no Asian national currency. Asia is not a nation. It is a continent. It has many nations. Each of those nations have their own currencies.
What is the name of Mexico's currencies?
Mexico uses the peso as its official national currency.
What currency replaced most kinds of money in 2002?
No currency replaced "most" money in 2002. The euro was introduced that year and replaced the old national currencies of a dozen states in the EU, but that left untouched about 180 other national currencies in use around the world.
What is the story behind the type of currency used in Europe today?
The nations of Europe decided in 1957 to form the European Economic Community (EEC) and from this, the idea of the European Union with no border control, a common central government and the same standards. It also needed ONE currency. That currency became the "Euro". On 1 January 2002 the "Euro" replaced the old national currencies. The currency has become extremely strong, the exchange rate in April 2009 is $1.30 to €1.
What is the national currency of Mozambique?
The kwanza (sign: Kw; ISO 4217 code: AOA) is the currency of Angola. Four different currencies using the name kwanza have circulated since 1977.
What kind of money does Europe use?
The main currency in Europe is the Euro, but more than half the countries in Europe have their own national currencies.
What did the twelve members of the European Union do with their national currencies in 2002?
They abandoned them and started using the Euro as their currency instead. There are a lot more than 12 members of the European Union, but only 12 were founder members of the Euro in 2002. Other EU countries changed to the Euro later, and some still do not use it.
When did the monetary unit in Italy change?
The Euro was introduced as the official currency of the European Union as an accounting unit in 1999 and was adopted as coin and paper currency on the 1 Januray 2002 and Italy is a member of the EU. When the currency was adopted for a certain period of time [variable per country] there was dual currency circulation - the former national currency [Italian Lira] and Euros. In Italy this period was extended to almost two years.
WHAT currency is made by IMF?
The IMF doesn't issue currency and is not a bank. It's a supra-national organization of nearly 200 countries that provides a venue for international action on monetary policy and trade.
Who created the euro?
The euro's origins can be traced to a series of international agreements, beginning in 1978, which were made among the members of what was then called the European Community, or EC. In February 1986 the framework for the unified monetary system was agreed upon by nations who signed the Single European Act, creating "an area without internal frontiers in which the free movement of goods, persons, services, and capital is ensured." The 1989 Delors Report outlined a plan to introduce the currency in three phases. The final phase of that plan began on January 1, 1999, when the 11 countries (later to become 12) belonging to the European Union established the conversion rates between their respective national currencies and the euro, creating a monetary union with a single currency. A three-year transition phase followed, during which monetary transactions could be made in euro, but there was no requirement to do so. On January 1, 2002, the central banks of the 12 participating countries put into circulation about 7.8 billion euro notes and 40.4 billion euro coins, together worth 144 billion euros. Simultaneously each country began to withdraw its own currency from circulation. By February 28, 2002, the changeover was complete, meaning the national currencies were completely withdrawn and only the euro was in circulation.The euro, the currency of the 12 European Union nations-Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, and Finland-went into circulation January 1, 2002, becoming part of daily life for more than 300 million people. The banknotes and coins replaced national currencies, making the franc, deutschmark, peseta, and lira, among others, history in the participating nations.Source: "When was the euro introduced?." History Answers. Visible Ink Press., 2005. Answers.com 07 Dec. 2009.when-was-the-euro-introduced
Strongest currency in the world is?
The Kuwait dinar is the highest valued currency in the world. As of Feb. 3, 2011 one Kuwait dinar was worth $3.57 American dollars. I do not know if that makes it the strongest. The Australian dollar and the Canadian dollar are currently valued at $1.01. Both currencies are considered strong because the countries have very low national debts. The countries also have very productive precious metal mines, which could enable those countries to quickly shift to gold or silver supported currencies, should a worldwide monetary crisis arise.
