Economy, Currency and Banking

The monetary unit of Austria is the single currency of the European Union (EU), the euro (1.07 euros equal U.S. $1; 1999 average). Austria is among 12 EU member states to adopt the euro. The euro was introduced on January 1, 1999, for electronic transfers and accounting purposes only, and Austria’s national currency, the schilling, was used for other purposes. On January 1, 2002, euro-denominated coins and bills went into circulation, and the schilling ceased to be legal tender.

As a participant in the single currency, Austria must follow economic policies established by the European Central Bank (ECB). The ECB is located in Frankfurt, Germany, and is responsible for all EU monetary policies, which include setting interest rates and regulating the money supply. On January 1, 1999, control over Austrian monetary policy was transferred from the central bank of Austria, the Austrian National Bank, to the ECB. After the transfer, the Austrian National Bank joined the national banks of the other EU countries that adopted the euro as part of the European System of Central Banks (ESCB). Austria has more than 1,100 commercial, savings, cooperative, and mortgage banks.