Full Terms and Conditions apply to all Subscriptions. Or, if you are already a subscriber Sign in. Other options. Close drawer menu Financial Times International Edition. Search the FT Search. World Show more World.
It has also escalated efforts to sign currency swap agreements, which enables direct trade between two countries in local currencies, instead of the usual reliance on U.
This includes trade flows, foreign debt, international assets held by banks and the CBR, local loans and local foreign exchange market turnover. Conversely, the role of the dollar has actually increased in transactions of private holdings held by companies and households. Some companies, however, have begun to move away from the greenback. If they had wanted to block the introduction of the euro, they could have voted for different representatives. Indeed, they had a chance to do just that during the and elections for the Bundestag, the lower house of the German parliament.
During the election, the "Initiative for the Deutsche Mark" was a small, single-issue party with a platform opposing the euro, but it received less than 0. In other words, In fact, if you want to talk about popular legitimacy, Germans had much more say over the euro than they did over the deutsche mark, which was imposed by the Allies in , more than a year before the first postwar parliamentary elections were held.
What's more, whereas the euro involved just replacing a currency, introducing the deutsche mark also entailed a currency reform that wiped out the bulk of Germany's financial assets. These are some of the facts we should keep mind when we hold the deutsche mark vs. Looking back, there's no denying that the deutsche mark was a great success and one that brought Germany prosperity and stability.
But this by no means makes the euro worse as a currency. In the second part of our series, we look at why the euro is at least as good a currency as the deutsche mark.
Zum Inhalt springen. News Ticker Magazin Audio Account. We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Table of Contents Expand. Drafting Monetary Policies. Handling Country-Specific Issues. Lender of Last Resort. Inflation-Controlling Measures. Currency Devaluation.
The Bottom Line. Key Takeaways There are 27 countries in the European Union, but 8 of them are not in the eurozone and therefore don't use the euro.
The 8 countries choose to use their own currency as a way to maintain financial independence on certain key issues. Those issues include setting monetary policy, dealing with issues specific to each country, handling national debt, modulating inflation, and choosing to devalue the currency in certain circumstances. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.
We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation.
0コメント