What is the significance of the EURO?
Answers
The significance of the Euro lies in playing role in international trade and in global financial markets.
Having one currency means having one central bank, which is Eurosystem.
All public debts and stock exchanges are denominated in euro.
The foreign exchange market trade only with euro.
The national central banks are part of monetary policy decisions of the euro system and execute the decisions made by system itself. It is for European Union of the same monetary regime.
A single currency makes the euro area an attractive region for third countries to do business, thus promoting trade and investment. Prudent economic management makes the euro an attractive reserve currency for third countries, and gives the euro area a more powerful voice in the global economy.