10 Euro – Grand Duchy of Luxembourg

In 2024, the Grand Duchy of Luxembourg remains a fully integrated member of the Eurozone, with the euro (EUR) serving as its sole official currency since its introduction in 1999 (as an accounting currency) and 2002 (in physical form). This monetary integration is a cornerstone of Luxembourg's economic and financial policy, providing stability and eliminating exchange rate risks within its largest trading partners. The country's influential financial sector, a pillar of its economy, deeply benefits from this framework, facilitating cross-border banking, investment fund administration, and other financial services within the unified European market. Luxembourg's monetary policy is thus determined by the European Central Bank (ECB), with the country participating in the ECB's Governing Council through its central bank, the Banque Centrale du Luxembourg (BCL).

The domestic currency situation is characterized by stability and high public trust, with no significant movements or political discourse towards altering the euro arrangement. However, Luxembourg, like all Eurozone members, is navigating the broader challenges managed by the ECB, primarily focused on controlling inflation following the post-pandemic and energy crisis spikes. While inflation in Luxembourg has moderated from its peak, it remains a key concern influencing consumer prices and wage negotiations. The government's fiscal and economic policies operate within this context, aiming to support purchasing power and competitiveness while adhering to EU-wide fiscal rules.

Looking forward, Luxembourg's currency background is inextricably linked to the future of the euro and deeper European integration. The Grand Duchy is a proactive proponent of strengthening the Economic and Monetary Union, including initiatives like the digital euro project, which the BCL is actively researching. Domestically, there is ongoing evolution in payment systems, with a steady shift towards digital and contactless payments, though cash remains in circulation. The stability of the euro is paramount for Luxembourg's open, service-based economy, and its monetary future will continue to be shaped in Frankfurt and Brussels as much as in Luxembourg City.