Economy, Currency and Banking

The monetary unit of Belgium is the single currency of the European Union (EU), the euro (1.07 euros equal U.S. $1; 1999 average). Belgium 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 Belgium’s national currency, the Belgian franc, was used for other purposes. On January 1, 2002, euro-denominated coins and bills went into circulation, and the Belgian franc ceased to be legal tender.

As a participant in the single currency, Belgium 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 Belgian monetary policy was transferred from the Belgian central bank, the National Bank of Belgium, to the ECB. The National Bank of Belgium joined the national banks of the other EU countries that adopted the euro as part of the European System of Central Banks (ESCB).