19 May 2010

EUR/USD : A Bit of History

  • The EUR, as an accounting currency, was launched on 01Jan99 (pink vertical line on chart), when it was used for non-cash transactions such as cheques and bank transfers. The initial opening price (from Reuters) was 1.1740 (horizontal bold pink line).
  • The EUR notes and coins were officially launched on 01Jan02.
  • More info from Wikipedia here. The legacy conversion rates can be found here as well. 
  • However one approaches this, seems that 1.17 is the number that comes up most. At a minimum then, I would expect this current sell-off to attain this level (now @ 1.2210).
  • Question : What are central banks holding reserves in EUR thinking now? Presumably for almost all of them this is their 2nd largest holding.

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