Theeuro, which is the currency of theEuropean Union member states in theeurozone, has been used internationally since its launch in 1999. On 1 January 2002, when the currency formally replaced 12 currencies of the original eurozone states, its usage was inherited in territories such asMontenegro which had used pre-euro currencies, while other minor currencies tied to pre-euro currencies were also replaced by the euro, such as inMonaco. Four small states have been given a formal right to use the euro, and to mint their own coins, but all other usage outside the eurozone has been unofficial. With or without an agreement, these countries, unlike those in the eurozone, do not participate in theEuropean Central Bank or theEurogroup.
Its growing use in this regard has led to its becoming the only significant challenger to the U.S. dollar as the world's mainreserve currency.
| State | Adopted euro | Issuing rights | Pop. |
|---|---|---|---|
 Andorra[1] | 1 January 1999(de facto)[a] 1 April 2012(de jure)[2] | 1 July 2013 | 87,486 |
 Monaco[3][4][5][6] | 1 January 1999 | 1 January 2002 | 38,423 |
 San Marino[7][8][9][10] | 34,042 | ||
 Vatican City[11][12][13][14] | 882 |
SeveralEuropean microstates outside the EU have adopted the euro as their currency. For EU sanctioning of this adoption, a monetary agreement must be concluded. Prior to the launch of the euro, agreements were reached withMonaco,San Marino, andVatican City by EU member states (Italy in the case of San Marino and Vatican City, and France in the case of Monaco) allowing them to use the euro and mint a limited amount of euro coins (with their own national symbols on theobverse side) to be valid throughout the eurozone. However, they cannot print banknotes. All of these states had previously had monetary agreements to use yielded eurozone currencies. San Marino and Vatican City had their currenciespegged to theItalian lira (Vatican andSammarinese lira) and Monaco used theMonegasque franc, which was pegged to theFrench franc.[2][15] Between 2010 and 2012, new agreements between the EU and Monaco, San Marino, and the Vatican City came into force.[2]
Asimilar agreement was negotiated with Andorra and came into force on 1 April 2012.[2][15]Andorra did not previously have an official currency. Prior to 1999, it used both theFrench franc andSpanish peseta asde facto legal tender currencies, though they never had an official monetary arrangement with either country, and switched to the euro (without any monetary agreement) when it was introduced on 1 January 2002. After years of negotiations, partially over concerns with banking secrecy,[16] the EU and Andorra signed a monetary agreement on 30 June 2011 which made the euro the official currency in Andorra and allowed them to mint their owneuro coins as early as 1 July 2013, provided they comply with the agreement's terms.[17][18] However, the first Andorran euro coins did not enter into circulation until January 2015.[19][20]
Outside the EU, there are currently threeFrench territories and aBritish territory that have agreements to use the euro as their currency. All other dependent territories of eurozone member states that have opted not to be a part of EU, usually withOverseas Country and Territory (OCT) status, use local currencies which are often pegged to the euro or U.S. dollar. As non-sovereign entities, dependent territories which have adopted the euro are not permitted to mint euro coins like theEuropean microstates, nor do they get a seat at theEuropean Central Bank (ECB) or theEurogroup.[2] France is responsible for ensuring that the laws governing theEMU are applied in territories of theirs using the euro.[21][22][23][24]
The first OCTs to adopt the euro through a monetary agreement were the French overseas territories ofSaint-Pierre-et-Miquelon, located off the coast of Canada, andMayotte in the Indian Ocean. They both adopted the euro on 1 January 1999 when the currency was firstintroduced at the electronic level.[22] Mayotte subsequently held areferendum in 2009 in which it decided to become an integral part of France. Its status was changed from an OCT to an OMR, where EU laws apply without separate agreements, on 1 January 2014,[25] which rendered the previous monetary agreement unnecessary.
On 22 February 2007,Saint Barthélemy andSaint Martin were politically separated from the FrenchOutermost region (OMR)Guadeloupe to form two new French overseas collectivities. This caused their status in the EU to briefly enterlegal limbo, until ratification of theTreaty of Lisbon reaffirmed that both territories were part of the EU. The euro continued to be used in both territories throughout this period without incident. When Saint Barthélemy subsequently became anoverseas territory of the European Union on 1 January 2012, changing its status to an OCT, the territory had to sign a monetary agreement to continue using the euro.[26]
With the adoption of the euro by Cyprus on 1 January 2008, theSovereign Base Areas of Akrotiri and Dhekelia, which had previously used theCypriot pound, also decided to adopt the euro. The base areas are anoverseas territory of the United Kingdom and under military jurisdiction. Even when the UK wasan EU member state, the base areas were not considered part of the EU. The euro was instead adopted to align the base areas with the laws and currency of the Republic of Cyprus.[27]
| Territories outside EU | Adopted euro | Agreement | Pop. | Notes | |
|---|---|---|---|---|---|
 | Akrotiri and Dhekelia | 1 January 2008 | 7 August 2007[24] | 18,195 | UK dependent territory. Replaced theCypriot pound with the euro along with Cyprus.[24] |
 | Saint Pierre and Miquelon | 1 January 1999 | 31 December 1998[28] | 5,819 | An OCT of France. |
 | French Southern and Antarctic Lands | 1 January 1999 | 400~800 | An OCT of France. | |
 | Saint-Barthélemy | 1 January 1999 | 12 July 2011[26] | 10,967 | Agreement entered into force on 1 January 2012 when the territory's status changed from an OMR to an OCT.[26] |
| State/Territory | Adopted | Seeking | Notes | Pop. |
|---|---|---|---|---|
 Kosovo | 1 January 2002[b] | EU membership[30] | Potential candidate[broken anchor] | 1,585,566 |
 Montenegro | 1 January 2002[c] | EU membership[31] | Candidate | 623,327 |
Montenegro andKosovo have also used the euro since its launch, as they previously used theGerman mark instead of theYugoslav dinar. Unlike the states above, they do not have a formal agreement with the EU to use the euro as their currency, and have never minted marks or euros; rather, they depend on bills and coins already in circulation.[32][33][34]
Due to concerns thatSerbia could use the dinar to destabilise Kosovo and Montenegro (the latter was in apolitical union with Serbia until 2006), both received Western help in adopting and using the mark (though there was no restriction on the use of the dinar or any other currency). They switched to the euro when the mark was replaced. InNorth Kosovo, mainly populated by the Serbian minority, theSerbian dinar, which replaced the Yugoslav dinar, continues to be used despite its lack of recognition or use elsewhere in Kosovo.[35]
The use of the euro in Montenegro and Kosovo has helped stabilise their economies, and for this reason the adoption of the euro by small states has been encouraged by formerFinance CommissionerJoaquín Almunia. Former European Central Bank presidentJean-Claude Trichet stated that the ECB – which does not grant representation to those who unilaterally adopt the euro – neither supports nor deters those wishing to use the currency.[citation needed]
In various countries, the euro is accepted by some merchants despite not being the official currency there. Additionally, it is sometimes used for pricing purposes even when actual payments are made in the official currency (e.g., for real estate).
The euro is often accepted in shops in countries neighboring the eurozone, like the border areas and capitals of Poland, the Czech Republic and Hungary, which are near to Germany, Austria, Slovenia, Slovakia and Croatia; the border areas of Switzerland, which is almost entirely surrounded by eurozone members except for Liechtenstein, which also uses the Swiss franc; the border areas between Sweden and Finland; and more.
Also, a large number of petrol stations andmotorway service areas in European countries outside the eurozone accept euros, andPoland (as well as non-EU membersBosnia and Herzegovina andSerbia) allow payment of highway tolls in euros.[32]
The euro is explicitly included in some laws in non-eurozone countries, includingEEA countries, based onEU directives. The laws, for example inmoney laundering, include specific euro amounts above which certain rules apply.
In some areas ofNew Caledonia andFrench Polynesia, both non-EU territories of an EU member state (France), euro payments can be accepted, alongside the territorialCFP Franc.
Some tourist-oriented shops in theUnited Kingdom accept the euro.[36] InNorthern Ireland, which shares a land border with the eurozone, the euro is accepted in some shops, including manychain stores.[37]
The application ofEU law and treaties toNorthern Cyprus is currently suspended.[38] Its territory is claimed by theRepublic of Cyprus, one of the EU member states, but is under the control of the Turkish Republic of Northern Cyprus (TRNC). The TRNC is not recognised by the Republic of Cyprus, the European Union, or by any country other than Turkey. EU law would start to apply in Northern Cyprus if it came under control of the Republic of Cyprus (if theCyprus dispute were resolved through unification), whose officiallegal tender is the euro.
Presently, the TRNC government has declared theTurkish lira to be its legal tender. The euro (along with other major currencies, such as the U.S. dollar and British pound) can be used to pay for goods and services in many shops associated with or situated near tourist hotspots, as well as some major supermarkets.[39][40] However, the exchange rate used by these businesses may not always reflect the true value of the currencies involved.[41][42]Cypriot euro coins, using bothGreek andTurkish languages, have been designed to avoid any bias towards any particular area of the island,[43] in keeping with both Greek and Turkish being the official languages of the Republic of Cyprus.[44] Some in northern Cyprus have called for the unilateral adoption of the euro.[45]
From April 2009 to June 2019,[46] theZimbabwean dollar was no longer in active use after it was officially suspended by the government due to hyperinflation. TheUnited States dollar (US$),South African rand (R),Botswanan pula (P),pound sterling (£),euro (€),Indian rupee (₹),Australian dollar (A$),Chinese yuan (元/¥), andJapanese yen (¥) were used instead, along with U.S.-cent denominatedZimbabwean bond coins andbond notes.[47][48]
In 1998, Cuba announced that it would replace the U.S. dollar with the euro as its official currency for the purposes of international trading.[49] On 1 December 2002, North Korea did the same. (Its internal currency, thewŏn, is notconvertible and thus cannot be used to purchase foreign goods. The euro also enjoys popularity domestically, especially among elites and resident foreigners.) Syria followed suit in 2006.[50]
Since 2007, Iran has asked all petroleum customers to pay in non-U.S. dollar currency in response to American sanctions. This has resulted in the Iranian oil bourse trading in several currencies, predominantly the euro for European trade, and either the yen or euros for sales in Asia.
In 2018, in response to U.S. sanctions, the Venezuelan Minister of Industries and National ProductionTareck El Aissami announced that all foreign exchange government auctions will no longer be quoted in U.S. dollars and would use euros,Chinese yuan and other hard currencies instead. El Aissami said the government would open bank accounts inEurope andAsia as potential workarounds to financial sanctions. In addition, Venezuela's banking sector will now be able to participate in currency auctions three times a week, adding that the government would sell some 2 billion euros amid a rebound in oil prices.[51]
Currently, there are several currenciespegged to the euro, some with fluctuation bands around a central rate and others with no fluctuations allowed around the central rate. This can be seen as a safety measure, especially for currencies of areas with weak economies. The euro is seen as a stable currency, i.e., there are no dramatic appreciations or depreciations of its value that might suddenly damage the economy or harm trade. Thus it provides security to traders and people holding that currency.
| Flag(s) | State | Pop. | Area (km2) | Code | Currency | Central rate | Pegged since | Fluctuation band | Formerly pegged to | EMU |
|---|---|---|---|---|---|---|---|---|---|---|
 | Bosnia and Herzegovina | 3,475,000 (2020 est.) | 51,129 | BAM | Bosnia and Herzegovina convertible mark | 1.95583 | 19991 January 1999 | 0.00% | DEM (from 21 November 1995) | |
 | Bulgaria | 6,447,710 (2022 est.) | 110,910 | BGN | Bulgarian lev | 1.95583 | 19991 January 1999 | 15% (de facto 0.0%) | DEM (from 1997) | ERM II |
 | Cabo Verde | 561,901 (2021 cs.) | 4,033 | CVE | Cape Verdean escudo | 110.265 | 19991 January 1999 | 0.00% | PTE (from middle of 1998) | |
 | Comoros | 850,886 (2019 est.) | 2,170 | KMF | Comorian franc | 491.96775 | 19991 January 1999 | 0.00% | FRF (from 23 November 1979) | |
 | Denmark | 5,935,619 (2023 est.) | 43,094 | DKK | Danish krone | 7.46038 | 19991 January 1999 | 2.25% (de facto 0.5%) | XEU | ERM II |
 | Morocco (inc.Western Sahara) | 37,984,655 (2022 est.) | 712,550 | MAD | Moroccan dirham(through abasket of currencies) | ≈ 11 | 19991 January 1999 | – | ||
 | North Macedonia | 1,836,713 (2021 est.) | 25,713 | MKD | Macedonian denar | ≈ 61 | 19991 January 1999 | DEM (from October 1995)[52] | ||
 | São Tomé and Príncipe | 220,372 (2023 est.) | 1,001 | STN | São Tomé and Príncipe dobra | 24.5 | 20101 January 2010 | 0.00% | ||
      | XAF currency union; Cameroon Central African Republic Chad Equatorial Guinea Gabon Republic of the Congo | 64,023,929 (30,135,732 5,552,228 18,523,165 1,737,943 2,397,368 5,677,493 (2023 est.)) | 2,757,528 | XAF | Central African CFA franc | 655.957 | 19991 January 1999 | 0.00% | FRF (from 17 October 1948) | |
 
| XOF currency union; Benin Burkina Faso Guinea-Bissau Ivory Coast Mali Niger Senegal Togo | 141,244,341 (14,214,095 22,489,126 2,078,820 29,344,847 21,359,722 25,396,840 18,383,658 8,703,961 (2023 est.)) | 3,269,077 | XOF | West African CFA franc | 655.957 | 19991 January 1999 | 0.00% | FRF (from 17 October 1948) | |
  | XPF currency union; French Polynesia New Caledonia Wallis and Futuna | 561,751 (278,786 271,407 11,558 (2022/ 2019/ 2018 census)) | 19,597 | XPF | CFP franc | 119.331742 | 19991 January 1999 | 0.00% | FRF (from 21 October 1949) |
As part ofERM II, theBulgarian lev has a fluctuation band of ±15%. TheDanish krone, however, has committed to a tighter fluctuation band of ±2.25%.[53]
Of the rest of the listed currencies, theBosnia and Herzegovina convertible mark maintains a fixed exchange rate through thecurrency board system; theCentral African CFA franc, theWest African CFA franc, theCFP franc, theCape Verdean escudo, theComorian franc, and theSão Tomé and Príncipe dobra maintain a conventional fixed exchange rate; theMacedonian denar uses a stabilized arrangement; and theMoroccan dirham is pegged to the euro through abasket of currencies. Other countries that, as of December 2023, have exchange rate regimes linked to the euro areRomania,Serbia,Singapore,Botswana,Tunisia,Samoa,Fiji,Libya,Kuwait,Syria,China andVanuatu.[54][55][56][57]
Since 2005, stamps issued by theSovereign Military Order of Malta have been denominated in euros, although the Order's official currency remains theMaltese scudo.[58] The Maltese scudo itself is pegged to the euro and is only recognised as legal tender within the Order.
In 2011, theSwiss franc was rapidly appreciating against the euro, harming its exports to the eurozone. In response, Switzerland implemented a cap to the Swiss franc's value. This was not so much a peg, as they were merely limiting its highest value and not its lowest. In 2015, Switzerland announced that it was going to scrap its currency peg to the euro.[59]
The percental composition of currencies of official foreignexchange reserves from 1995 to 2024.[60][61][62]
The euro is a major globalreserve currency, the second most widely held internationalreserve currency after the U.S. dollar.[63] Inheriting this status from theGerman mark, its share of international reserves has risen from 23.65% in 2002 to a peak of 27.66% in 2009 before declining due to theEuropean debt crisis, with Russia and Eastern Europe being the most significant users.[64][65]
The possibility of the euro becoming the first international reserve currency was widely discussed before 2009.[66]FormerFederal Reserve ChairmanAlan Greenspan gave his opinion in September 2007 that the euro could indeed replace the U.S. dollar as the world's primary reserve currency. He said it is "absolutely conceivable that the euro will replace the dollar as reserve currency, or will be traded as an equally important reserve currency."[67]
As of 2021, however, theeuro has not displaced theU.S. dollar as primaryreserve currency due to the European debt crisis.[citation needed] The euro's stability and future existence was doubted and its share of global reserves fell to 19% by year-end 2015 (compared to 66% for the U.S. dollar). As of year-end 2020, these figures stand at 21% for the euro and 59% for the U.S. dollar.
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