With a rich history and diversity, Europe offers endless opportunities for exploration. Today’s primary European currency is the euro, which is essential for travel expenses and purchases throughout most of the continent.
For a convenient and reliable way to exchange US dollars (USD) for euros or send money to friends and family in Europe, Western Union is here to help. With a vast network of agent locations across Europe and a user-friendly digital platform, we make it convenient to access your money when and where you need it.
Here’s what you should know about exchanging USD for euros, minimizing exchange fees, and managing your cash as you plan your trip.
What is the currency in Europe?
The euro, abbreviated as EUR and symbolized by “€,” is the most widely used currency in Europe. Euro banknotes include:
- €5
- €10
- €20
- €50
- €100
- €200
The €500 banknote was previously issued but phased out on April 27, 2019. However, it still retains its value (like all euro banknote denominations) and can be exchanged at any national central bank in the euro area. Coins range from 1, 2, 5, 10, 20 and 50 cent, €1, and €2.
Each euro banknote has a specific design and color scheme dedicated to a different period of European architecture, including Classical, Romanesque, Gothic, Renaissance, and Baroque designs.
An estimated 341 million people use the euro, making it the world’s second-most widely used currency. Still, you’ll find that some EU member nations, Switzerland with its Swiss franc (CHF), use their local currencies and don’t operate on the euro standard. The United Kingdom, which left the EU in 2020, uses British pound sterling (GBP) as currency.
History of the euro
As the new standard for money in Europe, the concept of the euro was introduced in the Maastricht Treaty in 1992 during the formation of the European Union (EU). However, it wasn’t until January 1, 1999, that the euro was officially launched as an “invisible” accounting currency for electronic payments and financial transactions.
At the time, each country adopting the euro was required to meet specific economic criteria, known as the convergence criteria, including:
- Inflation: Keep inflation within 1.5 percentage points of the average of the three countries with the lowest rates.
- Interest rates: Keep long-term interest rates within 2 percentage points of the countries with the lowest inflation.
- Exchange rates: Maintain a stable exchange rate for at least two years without major adjustments.
- Budget deficit: The government’s budget deficit should be no more than 3% of the country’s GDP (Gross Domestic Product: the total value of goods and services produced).
- Debt: Ensure the total government debt doesn’t exceed 60% of the GDP.
These criteria were part of the Economic and Monetary Union (EMU) framework (developed during the Maastricht Treaty) to ensure economic stability among eurozone members.
While the euro was introduced electronically in 1999, physical banknotes and coins were introduced on January 1, 2002. Existing forms of European money circulated alongside the euro after its introduction, with most national central banks accepting them for several years after 2002.
For much of the 21st century, the euro has been the world’s second-most widely held reserve currency after the US dollar, playing a significant role in international trade and transactions.
7 tips for exchanging US dollars for euros
You should have no problems exchanging USD for euros. But to exchange currency yourself, you’ll need to know the USD to EUR exchange rate and where to exchange your money for the European currency.
1. Research and compare exchange rates
The European Central Bank (ECB) controls the monetary policy for currency in Europe. ECB decisions and economic data like GDP growth and trade balances affect the euro’s exchange rate.
The rate you’ll receive for USD will also depend on where you decide to exchange your currency. Luckily, there is no shortage of exchange options, including banks, exchange kiosks, online platforms, and more.
You can use the Western Union app to track live exchange rates and ensure you receive a good rate before completing a currency swap. We also make it convenient to exchange USD for EUR at any of our agent locations across Europe or via our website or app.
2. Notify your bank ahead of traveling
Europe is a common destination for Americans, but you’ll still want to notify your bank about your travel plans before leaving. This includes which countries you plan on visiting and for how long. This should make it easy for you to transact abroad and stop your bank from declining any transactions in Europe or freezing your account.
3. Avoid exchanging money at airports, hotels, and tourist areas
Generally, exchanging dollars for European money at airports, hotels, and other seemingly convenient locations will cost you by way of fees, commissions, and poor exchange rates. Currency exchange booths are common in major tourist cities like Paris and Rome but rarely offer a good rate — and unlicensed street vendors can even exchange counterfeit money, so be cautious.
Plus, pickpockets are known to wait outside tourist areas looking to take cash from unsuspecting tourists. Be careful if you exchange money near the Eiffel Tower, Vatican City, or other European tourist hot spots.
Instead, opt for reputable currency exchange providers like Western Union, which often offer better rates and lower fees than airport or hotel kiosks.
4. Consider commissions and fees
Your European currency exchange may have hidden fees or commissions. These can range from 5% to 10% and even as high as 15% for an airport or hotel currency exchange. So, before completing a USD for EUR exchange, check your transaction’s fine print to confirm your exchange rate and associated fees.
Western Union’s fees are often lower than those charged by banks and other currency exchange providers, making it a cost-effective option for exchanging your USD for euros.
5. Withdraw euros instead of US dollars from ATMs
ATMs are common throughout Europe, and almost always have English-language instructions. This makes them a great way to exchange USD for European currency. You’ll want to withdraw cash in euros to save on currency conversion fees. This will allow your bank to handle the currency conversion, giving you a better exchange rate on your exchange.
When asking locals where to exchange foreign currency via an ATM, you may need to use different terminology depending on your location. That’s because ATMs have different names across the continent, like a “distributeur automatique de billet” in France, and a “bankomat” in many other countries.
If you encounter any issues with ATMs or prefer a more personalized service, you can always visit a Western Union agent location to exchange your cash.
6. Exchange money in Europe instead of the U.S.
While your local American bank or financial institution will likely allow you to exchange USD for European currency, getting euros in Europe is better. This means you should wait until you land overseas to conduct your exchange. Getting euros in the US will likely yield a worse exchange rate. Also, traveling to Europe with a lot of banknotes in hand could create a security concern with pickpockets prevalent across the continent.
7. Use reputable exchanges
The best way to convert currency is to use a reputable exchange. Fortunately, there are plenty of reputable exchanges for getting currency in Europe, so you won’t have to worry about being stuck without cash.
You also have the option to exchange USD for EUR online through the Western Union® app, which uses advanced security standards to protect your money, like:
- App touch ID
- Transfer tracking
- PCI DSS compliance
- Encryption
Using money in Europe
Currency in Europe operates similarly to dollars in the US. However, since Europe is comprised of various cultures, there can be differences throughout the continent that you should be aware of.
Can you use US dollars in Europe?
USD is not considered legal tender in Europe, and vendors don’t have to take payment in dollars. Tourist areas in major cities may accept dollars as a valid payment, but if you agree to pay with a European vendor, it will likely cost you more than if you had used euros. It’s best to stick with payment in euros for your purchases.
Tipping etiquette in Europe
Europe is a large continent with varying cultures. Each country has its own tipping etiquette and standards. For instance, some countries, like France, Italy, and Spain, include a service charge on bills at upscale restaurants and hotels. Other countries, like the United Kingdom and Germany, don’t; instead, a 10% tip is often customary.
Once you have your travel itinerary, research the tipping customs in the countries you plan to visit to know what to expect.
Where to get Euros near me?
Once you arrive in Europe, finding a currency exchange near you won’t be difficult. This is especially true in major cities and tourist destinations where travel agencies and currency exchange offices are readily available. You can also always opt to exchange dollars for European currency at any time online with Western Union.
FAQs
Which countries use the euro?
As of 2024, 20 European Union (EU) member states have adopted the euro (€) as their official currency:
- Austria
- Belgium
- Croatia
- Cyprus
- Estonia
- Finland
- France
- Germany
- Greece
- Ireland
- Italy
- Latvia
- Lithuania
- Luxembourg
- Malta
- The Netherlands
- Portugal
- Slovakia
- Slovenia
- Spain
Beyond these EU member states, several other countries and territories also use the euro, either due to formal agreements or historical ties. These include:
- The Azores
- The Canaries
- Ceuta and Melilla
- French Guiana
- Guadeloupe
- Madeira
- Martinique
- Mayotte
- Réunion
- Saint Barthélemy
- Saint Pierre
- Miquelon
Even more countries, including Andorra, Monaco, San Marino, and Vatican City, use the euro as their national currency. Countries and territories like Kosovo and Montenegro also use the euro as their de facto currency.
Several other EU member states plan to adopt the euro once they meet the criteria for joining the EMU. These countries are:
- Bulgaria
- Czechia
- Hungary
- Poland
- Romania
- Sweden
Can I use my debit card in Europe?
You can sometimes use your debit card on purchases in Europe. You may also be able to use your debit card to withdraw cash from ATMs across the continent. Just alert your bank to where you’ll travel so your debit card isn’t frozen.
Can I use my credit card in Europe?
Visa and Mastercard are both widely accepted throughout Europe. However, your payment options may be more limited if you’re using an American Express or Discover card. Before purchasing, check with the merchant to see which credit cards they will accept.
How much are euros in US dollars?
The euro is a floating-rate currency, meaning its value changes daily. Before exchanging currencies, you’ll need to check the exchange rate for USD to EUR to ensure you’re getting a good rate.
Can I exchange money through Western Union in Europe?
Yes, Western Union has numerous agent locations across Europe where you can exchange currency or receive money sent from abroad.
