About the Euro
The euro is the currency of 21 of the 27 EU countries, the euro area, and is used by several small European states as well. It was launched in 1999 for electronic payments, and notes and coins followed in 2002. Bulgaria became the 21st member on 1 January 2026.
Monetary policy for the whole euro area is set by the European Central Bank in Frankfurt. Its Governing Council meets every six weeks to set interest rates, with a target of 2% inflation over the medium term. One policy rate has to fit economies as different as Germany, Italy and Ireland, so differences in national growth and government debt can move the euro too.
The euro is the second most widely held reserve currency after the US dollar, and EUR/USD is the most traded currency pair in the world.
Paying in EUR
- SEPA credit transfers
- Euro payments within the Single Euro Payments Area, which covers the EU, the EEA and countries including the UK and Switzerland, need only the recipient's name and IBAN. A standard SEPA transfer arrives by the next business day.
- Instant payments
- SEPA Instant transfers arrive within ten seconds, 24 hours a day. Under the EU Instant Payments Regulation, banks in the euro area must be able to send and receive them, at no higher price than a standard transfer.
- Verification of Payee
- Since October 2025, euro-area banks check the recipient's name against the IBAN before a euro transfer is sent, and warn the payer if they do not match. Use the account holder's exact legal name.
- Payments from the UK
- The UK is still in SEPA, but since Brexit a payment between the UK and the EU must carry the payer's full name and address. Payments with incomplete payer details can be delayed or returned.
- Euros outside SEPA
- Euro payments to or from countries outside SEPA travel over SWIFT and need the receiving bank's SWIFT/BIC code. Large-value euro payments between banks settle in T2, the Eurosystem's settlement system.
Market news and analysis on the HUBFX blog.
