Using the euro - Your Europe (2024)

FAQs

Using the euro - Your Europe? ›

You can use the euro in 20 EU countries: Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. Discover more about the euro, which countries use it and the exchange rates.

Key Takeaways. There are 27 member countries in the European Union but six of them are not in the Eurozone and therefore don't use the euro. Denmark is a member country but has negotiated an opt-out with the Union and it has kept its own currency.

All intra-Union transfers in euro are treated as domestic transactions and bear the corresponding domestic transfer costs. This includes all member states of the EU, even those outside the eurozone providing the transactions are carried out in euro.

With time at your disposal, you'll be able to see exactly what the fee and rate is, and how many euros you'll get for your dollars. It's possible of course that you might get a better deal when you land in Europe. It may well be the case that fees are lower and exchange rates better.

By far, the largest drawback of the euro is a single monetary policy that often does not fit local economic conditions. It is common for parts of the EU to be prospering, with high growth and low unemployment. In contrast, others suffer from prolonged economic downturns and high unemployment.

Resist the urge to buy foreign currency before your trip.

Some tourists feel like they must have euros or British pounds in their pockets when they step off the airplane, but they pay the price in bad stateside exchange rates. Wait until you arrive to withdraw money.

Should You Use Cash or Credit When Traveling to Europe? Most international travelers will end up using a combination of cash and cards when visiting Europe. While credit cards are accepted in most situations, currency can be more convenient for public transportation and small vendors.

Like the US dollar, a euro is divided into 100 cents. There are seven different bills and eight different coins in use. The coins are: 1, 2, 5, 10, 20 and 50 cents; and one and two euro pieces. The bills are available in denominations of 5, 10, 20, 50, 100, 200 and 500 euros.

Here is an estimate of what 2 weeks in Europe might look like for a traveler with a mid-range budget: Accommodation: 40 Euros per night for 14 nights = 560 Euros. Food: 40 Euros per day for 14 days = 560 Euros. Transportation: 10 Euros per day for 14 days = 140 Euros.

A good rule of thumb is to carry $50-$100 a day in the local currency while travelling. Remember, though, that cash may not be the best option to pay for travel expenses. Credit cards offer great rewards, lower transaction fees, and can help you get a better exchange rate.

Should I convert currency before I travel? ›

Before your trip, it's best to do a currency exchange at your bank or credit union, which likely offers better rates and fewer and/or lower fees. Your bank or credit union may buy back leftover foreign currency in exchange for dollars when you return.

For credit cards, Visa and MasterCard are universal, while American Express and Discover are less common. US debit cards with a Visa or MasterCard logo will work in any European ATM. Go "contactless." Get comfortable using contactless pay options.

The euro makes it easy

You can use the euro cash in your wallet in 20 EU countries without having to change money, making exchanges fees a thing of the past. The euro makes living in or travelling to those countries simpler and less costly. It allows consumers to compare prices directly and pay across borders.

The euro has eliminated the costs of exchange rate fluctuations within the euro area. This protects consumers and businesses within the euro area from costly swings in currency markets, which, in some countries, used to undermine confidence, discourage investment and cause economic instability.

The Schengen area allows more than 400 million people to travel freely between member countries without going through border controls.

Where to Get Good Rates: ATMs and Local Banks. The best place to exchange money is a local ATM or a bank. Many foreign banks are happy to exchange your dollars for local currency for a better rate than you find elsewhere, or you can go to an ATM to skip the line.

Before your trip, it's best to do a currency exchange at your bank or credit union, which likely offers better rates and fewer and/or lower fees. Your bank or credit union may buy back leftover foreign currency in exchange for dollars when you return.