What is the Currency of Luxembourg?
Luxembourg's currency continues to play a critical role in the development of the country’s financial sector. The country had two sets of currencies between 1854 and 2017. The Luxembourgish franc was the first official currency to be used in Luxembourg. It was in circulation from 1854 to 1999. It was replaced by the euro in 2002. However, during the period between 1999 and 2002, the Luxembourgish franc was a subdivision of the euro, but the euro was not in circulation. During this period, the principle of “no obligation and no prohibition” applied where transactions could be completed in both euro and franc, but physical payment was restricted to the franc, as euro denominations were not yet in circulation. One euro was exchanged for approximately 40.40 francs.
Luxembourg has the euro as its official and national currency just like the other countries within the eurozone that use the common European money. One Luxembourg euro is subdivided into 100 cents. The euro is denoted with the symbol € while its ISO 4217 code is EUR. Luxembourg’s constitution provides for the printing of euro banknotes and cent coins for use as legal tender in Luxembourg. The Luxembourg euro bill has a decimal consisting of 100 equal units. The euro currency used in Luxembourg is minted by the European Central Bank.
Luxembourg Euro Coins
Luxembourg has a motif for all its eight coins, just like Netherlands and Belgium coins. Luxembourg euro coins are minted in three different designs. However, all coins contain the profile of the Grand Duke Henri of Luxembourg. There are two different portrayals of the Duke on the eight sets of coins. One portrait for the coins in the denomination of 1, 2, and 5 cents and a different portrait for the rest of the coins. The coins also bear the year of issue and the word “Letzebuerg,” which is the local name for Luxembourg. The euro coins have 12 stars arranged in the form of a semi-circle. The 12 stars represent Europe. Additionally, the number “2” appears on the rim of the 2-euro coin followed by two stars so that the number appears six times together with 12 stars. Luxembourg does not mint its own coins. Most of the coins are minted by the Netherlands’ Koninklijke Nederlandse Munt, Mint of Finland, and Mint of Paris. Luxembourg euro coins are among the rarest in Europe, even within the country.
Luxembourg uses the euro banknotes used within the eurozone. The banknotes have been in circulation in Luxembourg since 2002. The seven denominations of Euro banknotes range from 5 to 500. The banknotes used in Luxembourg are identical in design to the banknotes used in other countries. They are made of pure cotton fiber and measure from 4.7 by 2.4 inches to 6.3 by 3.2 inches. The banknotes have several features including the signature of the president of the European Central Bank, a bridge, and the EU flag with 12 stars. The banknotes also have the name “euro” in three scripts: Latin, Greek, and Cyrillic script. The security features include the crisp paper, holograms, watermarks, security thread, and matted surface.