It has been 20 years since the Irish started paying with Euro instead of the Irish Pound. What has the Irish entry in the European currency system brought to the country? And how has the Euro changed the economic scenery?
In 2002 the Irish pound was replaced by the Euro. From 1938 the Irish Pound was the dominating currency in Ireland. However, you were able to pay with British Pounds in most places even though you could not pay with Irish Pounds in England. Even though the Irish Pound was officially introduced in 1938 valuta exchanges in Ireland had been based on pounds in different forms since the year of 997. Entering the European currency system was a big change to the culture and the economic situation in Ireland.
The nations connected through a common currency
A country’s currency and what it is worth compared to the other currencies is telling for the country’s economic situation and whether it is healthy or not. A strong national economy means a strong currency. In 2002 when the Euro was introduced, bills and coins in Euros were officially distributed to 12 EU countries and the largest money exchange in history took place. The value of the existing currencies was converted into Euro, and the Irish Pound was set to 1 Euro at the price of 0,787564 Irish Pounds. Even though it had a rocky start it was a mark of an orientation towards the cooperation across the European countries’ boundaries.
Know the currencies and understand national economy
As written a country’s currency is important for its economy. Having knowledge on the different currencies, their fluctuation and their value in relation to each other can provide a better understanding of national economics. If you want to learn more about the different currencies and their value compared to each other, you can use this guide to help you get started. Through this site you will be presented to the world of Forex Trading which is based on currency exchange. Forex Trading can give you a solid insight in the dynamics of currency values and a possibility to weigh the different currencies against each other. And if you want to try Forex trading yourself, this is how to get started.
The British pound and Brexit’s effect
Looking to Ireland’s neighbour, the consequence of not being a part of the European Union and the currency is obvious. The British Pound has fallen in value compared to the Euro. The Irish decision to introduce Euros as the currency seems to have been the right decision. In the first few years the British Pound’s rate was higher than Euros as it was a new currency and investors were concerned that it might just be a mayfly. However, a lot has happened since then and when you look at England, the value of the British Pound and the trouble Brexit has brought, it seems like it is good to be a part of the EU and the European Currency System.