History of the Euro

The euro is a very new form of currency that was officially established in 2002, although the idea behind this universal money has been around since the 1950s. The Euro, EUR, is the cardinal currency of full members of the European Union (Finland, Belgium, Portugal, The Netherlands, Luxembourg, Italy, Ireland, France, Greece, Spain, Germany, and Austria) but is also used in some other regions that are not currently official members like Montenegro, Kosovo, and Andorra. The creation of this currency is one of the most significant changes to happen in Europe, and the money was formed in an attempt to create a uniform system of payment across Europe as interaction between countries is so common there. A unified central bank and common interest rate to be employed by the 12 members of this monetary union followed in the wake of the creation of the EUR. Monetary policy in Europe is based in Frankfurt, Germany since this is the headquarters of the central bank and is where decisions are made.

Historical British Pound Sterling to Euro Conversion Rates

As the Euro does not have a long track record yet, it has a limited history of conversion rates. It can be said that since its establishment, the euro has started and remained strong in comparison to the dollar and the British pound as it covers a wider economy and influences a greater number of people. The European Union has experienced continued improvement against its competition by succeeding in efforts to curb inflation, interest rates, and unemployment thereby lending stability to its currency. Upon its introduction, the Euro had an exchange rate against the British Pound Sterling of 1.59 GBP to EUR which really emphasized the power and magnitude of this new European economy on the economic climate of the rest of the world. Though the numbers have fluctuated from year to year, the euro has still done very well overall, showing signs of good control and prosperity.

The Modern Exchange Rate for the Euro to GBP

The Euro has continued to have a strong monetary influence on the global currency market. However, since the introduction of the Euro in 2002, the value of the currency has been eventually trickling downwards. Exchange rates for EUR against GBP have gone down from the previous levels of 1.59 EUR/GBP to approximately 1.10 EUR/GBP back in 2008. The downward spiral is usually associated with the overall drop in the global economy and particularly with the downward trend within the United States which the European Union has been dependent on for much of its economy. As a result of fewer Americans with money to spend internationally, the Euro has naturally declined in value by having less of a chance to circulate. Though the euro is still expected to remain stronger than most other currencies in circulation, it is not expected to see too much of an increase unless drastic changes are made overall.

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