5 Euro – Grand Duchy of Luxembourg

In 2019, the Grand Duchy of Luxembourg, as a founding member of the Eurozone, had its currency situation firmly defined by the use of the euro (€). The nation adopted the single currency at its inception in 1999 (for electronic transactions) and began using euro banknotes and coins in 2002, completely replacing the former Luxembourgish franc. Consequently, Luxembourg's monetary policy was and remains set by the European Central Bank (ECB) in Frankfurt, with the Central Bank of Luxembourg (BCL) participating in the Eurosystem to implement this policy and ensure financial stability.

A distinctive feature of Luxembourg's currency landscape was its continued issuance of euro coins with a national design. Luxembourgish euro coins featured the effigy of Grand Duke Henri, a practice maintained from the franc era. While these coins are legal tender throughout the Eurozone, their collection value often meant they circulated less within Luxembourg itself, with a mix of coins from other member states commonly used in daily transactions. Furthermore, Luxembourg, alongside Ireland, maintained a unique exception allowing certain older pre-euro coins (specifically 1, 2, and 5 Luxembourgish franc coins) to remain exchangeable indefinitely at the central bank, a symbolic nod to its monetary history.

The year 2019 saw Luxembourg operating within a stable euro environment, which underpinned its status as a global financial hub. The key domestic discussions around currency were not about sovereignty but focused on broader Eurozone governance, banking integration, and the implications of ECB monetary policy for the nation's large financial sector and highly open economy. The stability of the euro was fundamental to Luxembourg's economic model, facilitating cross-border financial services and investment, which are central pillars of its national prosperity.