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Technically, the whole country could just switch to Euros without even being in the EU.

Granted, the only two countries to do so (Montenegro and Kosovo) never bothered with creating their own currency to begin with, they went straight to Euros post-independence (with some disgruntlement from the EU). And then there's also two (Bulgaria and Bosnia) which are technically not using Euros, but their currencies are pegged to Euros and stupidly simple to convert (1 EUR = 1.95583 BAM/BGN, so just multiply/divide by 2).




Denmark is also in ERM II and 1 EUR ~ 7.46 DKK with a very tight band https://en.wikipedia.org/wiki/European_Exchange_Rate_Mechani...


I wonder why they pegged at 1.96 instead of 2?


They had pegged their currency to the DM (Deutsche Mark) and 1.95583:1 is still exactly the same exchange rate as when DM were converted to Euro.


> 1 EUR = 1.95583 BAM/BGN, so just multiply/divide by 2

Why didn't they just set the peg to 2?


Likely to make it simple for retailers to accept euro. Making it exactly two means the retailers would lose money on the exchange spread. Another example is with 1 hkd = 0.97 mop.


That's a proper speculation, not very much grounded in the reality. Also the Euro is not accepted to this day in retail in Bulgaria.


B/c the conversion to Euro happened later. It was already fixed after the hyper inflation in 1997.

The initital rate was 1000 levs = 1 DM, in 1999 there was a denomination of 1000 : 1, same year the Euro happened and the Deutsche mark enjoyed the same rate to the Euro.




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