Legal Definitions - ECU

ECU

ECU stands for European Currency Unit. It was a basket of currencies used in the European Union before the introduction of the euro. The value of the ECU was determined by the exchange rates of the currencies in the basket.

For example, if the ECU was made up of the currencies of France, Germany, and Italy, the value of the ECU would be determined by the exchange rates of the French franc, German mark, and Italian lira.

Another example is that the ECU was used as a unit of account for the European Union budget and for some international transactions.

The examples illustrate how the ECU was a basket of currencies used in the European Union before the introduction of the euro. The value of the ECU was determined by the exchange rates of the currencies in the basket. The ECU was used as a unit of account for the European Union budget and for some international transactions.