Euro exchange rate on Monday, 18th August
The euro, the shared currency of 19 out of 27 European Union countries, was launched on January 1, 1999. As of Monday, August 18, the euro is trading at $1.518.14 for purchase and $1.519.44 for sale.
The eurozone, a logical extension of the Union's customs-free trade zone, consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain. Not all EU countries, however, have adopted the euro as their national currency. Britain, for instance, did not participate in the launch of the euro.
In some cases, the euro is traded on parallel markets outside official channels. This unofficial euro rate is often termed "Euro Blue." The term derives from the established terminology related to parallel or black market exchange rates, such as Argentina’s "Blue Dollar."
The "Euro Blue" circulates in the black market and usually has a higher value than the official euro. Sectors that travel abroad opt for the purchase of euros in the black market, causing an increase in the price of the Euro Blue.
The value of the Euro Blue has a significantly higher difference from the official euro. On these markets, the Euro Blue is trading at 1519.44 for purchase and 1542.82 for sale. In comparison, the spread between the euro blue and the official euro is 99995%.
These restrictions gained new momentum in December 2019 and were further deepened throughout 2020. The term "Euro Blue" began to be used in 2011 due to restrictions for the acquisition of foreign currency. In English, "blue" not only refers to the colour blue but also to something "dark."
The shared currency was seen as a solution to the constant disputes over exchange rates that had marked European policy after World War II. The eurozone has been a significant step towards economic integration within the EU. However, the existence of the Euro Blue highlights the ongoing challenges in managing currency markets and maintaining economic stability across the region.
[1] Source: Investopedia, "Euro Blue" (https://www.investopedia.com/terms/e/euroblue.asp)
- The unofficial euro, often referred to as the "Euro Blue," is traded in the black market, particularly by sectors that travel abroad, with its price fluctuating higher than the official euro rate.
- In the banking and finance industry, the term "Euro Blue" is used to denote the unofficial euro circulating in the black market within the European Union, reflecting the ongoing challenges in managing currency markets and maintaining economic stability.
