Difference Between Euro and dollar
What is the difference between the Euro and the dollar?
The Euro is the currency used by 17 of the 27 countries that are part of the European Union and 5 countries of Europe that are not part of this organization. It is the second largest trading currency in the world after the US dollar. The exchange rate between the two fluctuates depending on market conditions. The Euro and the dollar are the two most important currencies in the world and play an important role in the economy of the world. Of the two, the dollar is the more established currency because it has been in use a lot longer.
About the Euro
The Euro came into use in December 2005 as the currency of the European Union but countries have the option to retain their own currency. It is administered by the European Central Bank, which is based in Frankfurt, Germany. This bank is the authority for all the financial matters related to the Euro along with other factors such as interest rates. This currency has been instrumental in strengthening and stabilizing the economy of Europe.
About the dollar
The US dollar is the currency to which all other currencies are compared on the market. There are two governing bodies for this currency – the Federal Reserve, which is the central bank of the US, and the Federal Open Market Commission. The dollar has been very instrumental in making the US economy one of the most important economies in the world.
The Euro and the dollar are the largest reserve currencies and are used all over the world. Products are either priced in Euros or priced in US dollars. Recently the dollar is depreciating in value against the Euro. The exchange rate has remained stable for the past few months with the US dollar trading at $1.44 for 1 Euro.