European Unit of Account
Encyclopedia
The European Unit of Account (EUA) was a unit of account
used in the European Communities
from 1975 to 1979, when it was replaced at parity by the European Currency Unit
, in turn replaced at parity in 1999 by the euro
.
Initially it was used for Lomé Convention
and European Investment Bank
operations before being gradually introduced into other sectors of Community activity.
The EUA was a basket of European currencies, originally designed to have the same value in mid-1974 as the IMF Special Drawing Rights
basket, both worth US$1.20635; they immediately moved apart in value. Different units of account had previously been used for different purposes, including the budget, the European Coal and Steel Community
, and the Common Agriculture Policy.
s were used as units of account in international bond market
s. Some of these were defined in ISO 4217
.
Unit of account
A unit of account is a standard monetary unit of measurement of value/cost of goods, services, or assets. It is one of three well-known functions of money. It lends meaning to profits, losses, liability, or assets....
used in the European Communities
European Communities
The European Communities were three international organisations that were governed by the same set of institutions...
from 1975 to 1979, when it was replaced at parity by the European Currency Unit
European Currency Unit
The European Currency Unit was a basket of the currencies of the European Community member states, used as the unit of account of the European Community before being replaced by the euro on 1 January 1999, at parity. The ECU itself replaced the European Unit of Account, also at parity, on 13...
, in turn replaced at parity in 1999 by the euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
.
Initially it was used for Lomé Convention
Lomé Convention
The Lomé Convention is a trade and aid agreement between the European Community and 71 African, Caribbean, and Pacific countries, first signed in February 1975 in Lomé, Togo.- History :...
and European Investment Bank
European Investment Bank
The European Investment Bank is the European Union's long-term lending institution established in 1958 under the Treaty of Rome. A policy-driven bank, the EIB supports the EU’s priority objectives, especially European integration and the development of economically weak regions...
operations before being gradually introduced into other sectors of Community activity.
The EUA was a basket of European currencies, originally designed to have the same value in mid-1974 as the IMF Special Drawing Rights
Special Drawing Rights
Special Drawing Rights are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund . Not a currency, SDRs instead represent a claim to currency held by IMF member countries for which they may be exchanged...
basket, both worth US$1.20635; they immediately moved apart in value. Different units of account had previously been used for different purposes, including the budget, the European Coal and Steel Community
European Coal and Steel Community
The European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and create the foundation for the modern-day developments of the European Union...
, and the Common Agriculture Policy.
Bond market baskets of currencies
Various European currency basketCurrency basket
A currency basket is a portfolio of selected currencies with different weightings. A currency basket is commonly used to minimize the risk of currency fluctuations. An example of a currency basket is the European Currency Unit that was used by the European Community member states as the unit of...
s were used as units of account in international bond market
Bond market
The bond market is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the Secondary market, usually in the form of bonds. The primary goal of the bond market is to provide a mechanism for long term funding of public and...
s. Some of these were defined in ISO 4217
ISO 4217
ISO 4217 is a standard published by the International Standards Organization, which delineates currency designators, country codes , and references to minor units in three tables:* Table A.1 – Current currency & funds code list...
.
| Alphabetic code | Numeric code | Name |
|---|---|---|
| XBA | 955 | European Composite Unit (EURCO) |
| XBB | 956 | European Monetary Unit (E.M.U.-6) |
| XBC | 957 | European Unit of Account 9 (E.U.A.-9) |
| XBD | 958 | European Unit of Account 17 (E.U.A.-17) |
| XEU | 954 | European Currency Unit European Currency Unit The European Currency Unit was a basket of the currencies of the European Community member states, used as the unit of account of the European Community before being replaced by the euro on 1 January 1999, at parity. The ECU itself replaced the European Unit of Account, also at parity, on 13... |
| EUR | 978 | Euro Euro The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,... |