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Adoption of the Euro in Portugal

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Portugal was one of the first countries to adopt the Euro after its introduction in 1999,[1] phasing out its previous national currency, the Portuguese escudo, entirely after 1 January 2002.[2]

History

Conceptualization of the euro on European level

The conceptualization of the euro began in the late 1970s, sparked by the desire for a European response to the dominance of the U.S. dollar.[3][4][5] German Chancellor Helmut Schmidt and French President Valéry Giscard d’Estaing played pivotal roles in this development. Initially, the euro served as an accounting unit for international transactions, known as the ECU, before evolving into a common currency.[6][7] The euro officially came into existence on 1 January 1999, as part of efforts to create an economic and monetary union within the European Union.

Process of euro adoption in Portugal

Portugal was one of the first countries to adopt the euro, with the Portuguese escudo ceasing to be legal tender after 31 December 2001.[8][9]

The transition process to the euro in Portugal involved a three-year period, starting from 1 January 1999, during which the euro existed as "book money". Euro banknotes and coins were introduced on 1 January 2002.[10] The dual circulation period – when both the Portuguese escudo and the euro had legal tender status – ended on 28 February 2002.[11] The government of Portugal replacing the Portuguese escudo at a fixed conversion rate of 200.482 PTE per one euro.[12] Portuguese government and financial institutions undertook extensive efforts to ensure a seamless transition to the Euro.[13] This included the modification of financial software, recalibration of ATMs, and widespread distribution of new euro banknotes and coins. Also, the exchange of the former Portuguese national currency was done by the Banco de Portugal (Central Bank of Portugal), which exchanged Portuguese escudo coins until 31 December 2002 and continued to exchange escudo banknotes until 28 February 2022.[14]

See also

References

  1. ↑ Portugal and the euro: was one of the first countries to adopt the euro on 1 January 1999
  2. ↑ Portugal and the euro
  3. ↑ Pollard, Patricia S. (2001). "The Creation of the Euro and the Role of the Dollar in International Markets". Review 83 (5). doi:10.20955/r.83.17-36. https://files.stlouisfed.org/files/htdocs/publications/review/01/09/0109pp.pdf. Retrieved on 2023-11-27. 
  4. ↑ "Die Erblast des Euro – eine kurze Geschichte der Europäischen Währungsunion" (in de). 19 October 2010. https://www.bpb.de/shop/zeitschriften/apuz/32450/die-erblast-des-euro-eine-kurze-geschichte-der-europaeischen-waehrungsunion/. 
  5. ↑ "Euro – History and Purpose". https://european-union.europa.eu/institutions-law-budget/euro/history-and-purpose_en. 
  6. ↑ "Valery Giscard d'Estaing – a European Dreamer". 15 December 2020. https://fedtrust.co.uk/valery-giscard-destaing-a-european-dreamer. 
  7. ↑ "Glossary:European currency unit (ECU)". https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Glossary:European_currency_unit_(ECU). 
  8. ↑ "Portugal and the Euro". https://economy-finance.ec.europa.eu/euro/eu-countries-and-euro/portugal-and-euro_en. 
  9. ↑ "Our Money". 12 December 2022. https://www.ecb.europa.eu/euro/intro/html/index.en.html. 
  10. ↑ "Portugal and the euro". https://economy-finance.ec.europa.eu/euro/eu-countries-and-euro/portugal-and-euro_en. 
  11. ↑ Portugal and the euro
  12. ↑ Portugal and the euro
  13. ↑ "Are Financial Institutions Really Ready for the Euro?" (in en). strategy+business. https://www.strategy-business.com/article/9932. 
  14. ↑ Portugal and the euro
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