Like most European Union (EU) states, Spain has adopted the euro as its official currency. EU members have developed a common currency to facilitate travel and trade within the euro area. Other countries that use the euro include Malta, Slovenia, the Netherlands, Italy, Germany, France, Austria, Portugal, Cyprus, Greece, Finland, Luxembourg, and Ireland, among others. The euro has used the EUR code and the € symbol, and can be split into 100 cents. Euro banknotes are available in denominations of € 5, € 10, € 20, € 50, € 100, € 200 and € 500 , and the coins are minted in 1, 2, 5, 10, 20 and 50 cents and 1 € and 2 € denominations. The currency is issued by the European Central Bank. L’
History of the Spanish currency
Prior to the use of the euro in 2002, Spain used a variety of other currencies. These currencies included the Royal Spanish, the Spanish Escudo, and the Spanish Peseta, and were sometimes used simultaneously. Introduced by King Pedro I of Castile, true Spanish was used from the mid-14th century until 1864. Two forms of the Spanish escudo were added later: silver and gold. Spain used the silver escudo from 1566-1833 and the gold escudo between 1864 and 1869, until it was replaced by the peseta. Spain started using the peseta when it joined the Latin Monetary Union in October 1868. The peseta was Spain’s currency from 1869 to 2002. The euro became Spain’s official currency in 2002.
Transition from Peseta to Euro
When EU countries started adopting the euro as their common currency, a “harmonization” fund was set aside. The objective of the fund was to support the poorest states in the EU in order to minimize economic disparities. Spain was a beneficiary of this fund and contributed to the development of motorways, high-speed railways and airports. The construction of these structures has led to enormous economic growth in Spain. Today the country is among the top 15 economies worldwide and among the top 5 economies in Europe. Some of the notable industries in Spain include automobiles, clay and refractories, shipbuilding, food and beverages, clothing and footwear, and chemicals. It also produces agricultural products such as vegetables, poultry, citrus fruits, sugar beets,
Exchange rate of the euro
The euro is among the most traded currencies in the world and ranks between the US dollar and the British pound. As of September 25, 2017, 1 euro could be exchanged for 1.18 US dollars. On the other hand, 1 British pound could be exchanged for 1.14 euros. Comparison of these three currencies indicates that the euro is still among the strongest currencies in the world.
