Euro in Madrid. The euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1 (US$1.1743). Physical euro coins and banknotes entered into circulation on 1 January 2002, making it the day-to-day operating currency of its original members, and by March 2002 it had completely replaced the former currencies. While the euro dropped subsequently to US$0.83 within two years (26 October 2000), it has traded above the U.S. dollar since the end of 2002, peaking at US$1.60 on 18 July 2008. In late 2009, the
International status and usage of the euro Cypriot pound, also decided to adopt the euro. The base areas are an overseas territory of the United Kingdom, an EU member state which itself does not use the euro, but these bases are outside of the EU and under military jurisdiction. Their laws and currency have been aligned with those of the Republic of Cyprus, leading to the euro's adoption in the two areas. Montenegro and Kosovo have also used the euro since its launch, as they previously used the German mark rather than the Yugoslav dinar. Unlike the states above, they do not have a formal agreement with