European Currency Unit (ECU)

European Currency Unit (ECU),

Definition of European Currency Unit (ECU):

  1. The European Currency Unit (ECU) was the official monetary unit of the European Monetary System (EMS) before it was replaced by the euro. The value of the ECU was used to determine the exchange rates and reserves among the members of the EMS, but it was always an accounting unit rather than a real currency.

  2. An accounting unit based on a representative basket of currency units from European Union member states. The adoption of the Euro made the ECU obsolete.

  3. The European Currency Unit (ECU) was introduced on March 13, 1979, along with the exchange rate mechanism (ERM), which was designed to reduce exchange rate variability and achieve monetary stability in Europe prior to the introduction of the euro, at parity, on Jan. 1, 1999. The ECU replaced the European Unit of Account in 1979.

How to use European Currency Unit (ECU) in a sentence?

  1. It was a composite of 12 European Union member countries. .
  2. The European Currency Unit (ECU) was the monetary unit used by the European Monetary System (EMS) before being replaced by the euro. .
  3. The ECU was introduced in 1979 and replaced by the euro in 1999. .
  4. The exchange rate mechanism (ERM) was introduced alongside the ECU, designed to reduce exchange rate variability and achieve monetary stability in Europe. .

Meaning of European Currency Unit (ECU) & European Currency Unit (ECU) Definition