The start of the euro has not been smooth Euro's start has not been smooth. The French government had approved the appointment of Duisenberg, who is Dutch, only after Duisenberg implied that he would leave his position after four years in favor of Bank of France governor Jean-Claude Trichet. Furthermore, the euro has seen its value deteriorate during the first three months of its existence. It reached an all-time low of 1.0782 on March 4. The main reason for this drop is the general weakness of the European economy compared to the booming economy of the United States.
Some analysts expect the euro to continue to fall in the months ahead.
The euro is a very ambitious project. This is the first time in history that a group of independent states had agreed to give up control of their national currencies and create a monetary union. The success of the euro will depend on a diverse mix of economic, political, and cultural factors. France's former colonies use the CFA franc, a currency that is pegged to the French franc. The link between the French and CFA francs has made the CFA franc a de facto partipant of the monetary union.