The Euro (EUR) is the official currency of seventeen of the 27 member states of the European Union. It was officially adopted in 1999 and member countries abandoned their old currencies on January 1st, 2002. It is currently the world’s second reserve currency after the US dollar.
The original plan of 1:1 parity with the dollar proved short-lived, as the Euro plummeted after its introduction in 2002 and then began to gain strength against the dollar from 2003 onwards. There are an estimated €890 billion in circulation, even more than the US dollar. Monetary policy is decided by the European Central Bank (ECB)
The lowest gold price in Euros was below €300 per ounce shortly after its introduction. Since then, gold has gained against the common currency and hit a high of €2,000 an ounce in 2021.
Euro coins are made up of copper, zinc, aluminum, nickel and tin. Being born in the era of fiat money, the Euro is not (and never was) backed by or minted with precious metals.
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