The creation and introduction of the euro on 1 January 1999 was one of the most important economic events of the end of the twentieth century. The paper shows that financial linkages between Europe and Latin America may be the most relevant for Latin America. Exchange rate policy will also be...

The paper analyses the various channels that may impact the region after the emergence of euro as an international currency. The paper shows that financial aspects may be the more relevant for Latin America. Exchange rate policy will also be affected as large swings in bilateral exchange rate...