At the beginning of its introduction, the euro fell sharply against various currencies. 1999 When the euro was introduced, the value per euro was $65,438+0.18; On June 26th, 2000 10, the euro fell to an all-time low of $0.8228. But then the euro began to experience recovery. At the beginning of 200 1 year, the euro rose to nearly $0.96. But then it entered a period of decline, although this time the decline was small, with the lowest drop to 0.834 USD 200 1.

Under the floating exchange rate system, countries no longer stipulate the fluctuation range of exchange rate, and the central bank no longer undertakes the obligation to maintain the upper and lower limits of fluctuation. The exchange rate is the result of self-fluctuation and adjustment according to the foreign exchange supply and demand in the foreign exchange market. At the same time, the change of foreign exchange supply and demand caused by a country's balance of payments situation is the main factor affecting the exchange rate change-in countries with surplus balance of payments, foreign exchange supply increases, foreign currency prices fall, and exchange rates float downward; In countries with balance of payments deficits, foreign exchange demand increases, foreign currency prices rise and exchange rates rise.