2 Euro (Monograms on Luxemburgish Coins) – Grand Duchy of Luxembourg

In 2004, the Grand Duchy of Luxembourg was in its third year of using the euro as its sole legal tender, having successfully adopted the new currency in 2002 alongside fellow members of the eurozone. This period represented a phase of consolidation and normalization, as the Luxembourgish franc (LUF) had been fully withdrawn from circulation and was no longer used for daily transactions. The population and businesses had largely adjusted to the new pricing and accounting systems, though psychological references to the old franc occasionally persisted, especially among older residents.

Luxembourg's unique economic position, characterized by a large financial sector, high GDP per capita, and a significant cross-border workforce, meant its engagement with the euro was particularly deep. The currency facilitated even greater financial integration with its key partners, Belgium and Germany, streamlining transactions for the thousands of commuters and reinforcing Luxembourg's role as a major banking hub. The stability of the euro was beneficial for the country's export-oriented and service-driven economy, providing a predictable monetary environment for international investment.

Domestically, the National Bank of Belgium, in collaboration with the Central Bank of Luxembourg, remained responsible for issuing euro coins with Luxembourg's national side designs, featuring Grand Duke Henri. As a member of the Eurosystem, Luxembourg's monetary policy was set by the European Central Bank (ECB) in Frankfurt. By 2004, any initial transitional challenges, such as price rounding concerns, had largely subsided, and the euro was firmly entrenched as the functional and symbolic currency of the nation's modern economic identity.