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Technically, the whole country could just switch to Euros without even being in the EU. Granted, the only two countries to do so (Montenegro and Kosovo) never
by input_sh 2y ago
Technically, the whole country could just switch to Euros without even being in the EU.
Granted, the only two countries to do so (Montenegro and Kosovo) never bothered with creating their own currency to begin with, they went straight to Euros post-independence (with some disgruntlement from the EU). And then there's also two (Bulgaria and Bosnia) which are technically not using Euros, but their currencies are pegged to Euros and stupidly simple to convert (1 EUR = 1.95583 BAM/BGN, so just multiply/divide by 2).
- madars 2y agoDenmark is also in ERM II and 1 EUR ~ 7.46 DKK with a very tight band https://en.wikipedia.org/wiki/European_Exchange_Rate_Mechanism?useskin=monobook https://en.wikipedia.org/wiki/European_Exchange_Rate_Mechani...
- jefftk 2y agoI wonder why they pegged at 1.96 instead of 2?
- _Microft 2y agoThey had pegged their currency to the DM (Deutsche Mark) and 1.95583:1 is still exactly the same exchange rate as when DM were converted to Euro.
- gottorf 2y ago> 1 EUR = 1.95583 BAM/BGN, so just multiply/divide by 2 Why didn't they just set the peg to 2?
- wolpoli 2y agoLikely to make it simple for retailers to accept euro. Making it exactly two means the retailers would lose money on the exchange spread. Another example is with 1 hkd = 0.97 mop.
- xxs 2y agoThat's a proper speculation, not very much grounded in the reality. Also the Euro is not accepted to this day in retail in Bulgaria.
- xxs 2y agoB/c the conversion to Euro happened later. It was already fixed after the hyper inflation in 1997. The initital rate was 1000 levs = 1 DM, in 1999 there was a denomination of 1000 : 1, same year the Euro happened and the Deutsche mark enjoyed the same rate to the Euro.
- deleted 2y ago[deleted]