ABSTRACT
As the millennium is drawing to a close, Europe stands at the eve of a major change, i.e. the introduction of a single European currency. A large majority of European Union (EU) countries have adopted a supranational currency, the Euro, in the year 1999 and, provided no major political upheaval occurs in the coming years, they will be fully replacing their national currencies with new Euro banknotes and coins floating from 2002. The European case ofabolishing national currencies and creating a supranational currency for an area ofas many as eleven countries stands out as a single case in the contemporary world. Ofcourse, due to so-called 'globalisation', 'internationalisation' and 'financial market integration', various countries across the globe are aiming at international monetary cooperation and keeping exchange rates stable. Yet, nowhere else in the world are countries as serious about giving up their national currencies and replacing them by a new, previously non-existent supranational currency.
