What backs the "Euro" currency? Is is based on a gold standard, or what? Where do they actually keep the gold?

Question

If they administer that out of Germany, what if there is a wartime again with them?

Answer 1

The euro is backed by the European central bank out of Frankfurt. No major economy today is backed by the "gold standard". Gold is a financial asset, but the amounts a country would possess doesn't necessarily affect the day-to-day value of currency. As for where gold is kept, it is generally held in reserves by the central banks.

Answer 2

The Euro is backed by precisely the same thing as the US Dollar and all of the world's other currencies: The "full faith and credit" of the governments issuing them. No currency in the world is backed by gold or any other precious metal any more.
I cannot envision a war with any of the European Union countries, and I consider it an extremely remote possibility. Also, Germany is one of 13 countries presently using the Euro (soon to be more than 20. Malta and Cyprus join in 2008, with more to follow)

Answer 3

right here is the difficulty my pal. Backing a foreign places money with Gold works completely in case you have no commerce outdoors your borders. by way of fact each and all the gold replace palms in no way leaves your economic gadget. yet in the era of Globalization and commerce Deficits, a foreign places money in line with Gold ability your economic gadget is in all probability to be depleted of all its Gold once you import products from different countries. As such, a foreign places money backed by ability of Gold is an show prepare to economic injury, as your usa imports widgets and exports gold. so because it stands now, Fiat money is your best option to a foreign places money backed by ability of Gold or the different difficult asset.