What Currency Does Luxembourg Use Now?

What Currency Does Luxembourg Use Now?

Luxembourg uses the euro (€) as its official currency. If you are visiting, moving, or doing business in the country, prices, salaries, taxes, and everyday payments are handled in EUR, the euro’s international currency code.

In this blog guide, you will get a clear answer to what currency does Luxembourg use, plus a practical note on why the euro matters in forex trading and exchange rates.

What Currency Does Luxembourg Use Today?

What currency does Luxembourg use? Luxembourg uses the euro (€) as its official and everyday currency. Prices are displayed in EUR, and both cash and card payments are made in euros.

Luxembourg is part of the euro area, so the currency works the same way as it does in many other European countries that use the euro.

Quick Currency Facts for Luxembourg

Here are the key details of Luxembourg’s Currency laid out:

• Official currency: Euro
• Symbol: €
• Currency code: EUR
• Subdivision: 100 cents
• Used for: shopping, salaries, taxes, bills, and banking

Why Luxembourg Uses The Euro

Luxembourg adopted the euro through the European Economic and Monetary Union.

• The euro was introduced first as an accounting and electronic currency for a transitional period.
• Euro banknotes and coins arrived on January 1, 2002.
• Luxembourg had a short period where both the old currency and the euro were legal tender, and that dual circulation ended on February 28, 2002.

That is why, today, Luxembourg is fully a euro country in both daily spending and financial systems.

What Currency Did Luxembourg Use Before The Euro

Before the euro, Luxembourg used the Luxembourg franc, commonly abbreviated as LUF.

When euro cash entered circulation in January 2002, the Luxembourg franc was phased out during the dual circulation window and then stopped being legal tender after the end date noted above.

Coins And Banknotes In Luxembourg

Luxembourg uses the same euro banknotes as the rest of the euro area, and they are accepted throughout euro countries.

Luxembourg also issues euro coins with a Luxembourg national design on one side. These coins are still valid everywhere in the euro area, meaning a coin minted in Luxembourg can be spent in other euro countries and vice versa.

How Do You Pay In Luxembourg?

Luxembourg is modern and card friendly, so card payments are widely accepted in many places. Still, it helps to keep some cash for small purchases, local markets, or situations where card minimums exist.

If you are arriving from outside the euro area, you will usually get euros via ATM withdrawal or currency exchange. Either way, your goal is simple. You want to hold EUR for daily use since it is the country’s legal tender.

How Luxembourg’s Currency Impacts Forex Markets

The euro connects Luxembourg to one of the biggest currency markets in the world.

The Euro Is A Major Forex Currency

Luxembourg uses the euro, and the euro is one of the most traded currencies in the world. The Bank for International Settlements reported that global FX trading reached $9.6 trillion per day in April 2025, with the euro among the most traded currencies in that market.

This matters because the Euro is linked to a deep global market. That affects exchange rates, hedging costs, and the way international businesses and investors manage exposure.

EUR USD Is The Reference Pair Many People Watch

In forex, currencies are quoted in pairs. One of the most watched pairs globally is EUR USD, which reflects how many US dollars one euro can buy.

• If EUR USD rises, it means the euro is stronger versus the dollar
• If EUR USD falls, it means the euro is weaker versus the dollar

For people in Luxembourg, this can matter when paying for dollar priced goods or services, traveling outside the euro area, investing in US assets, or running a business with USD revenue or costs.

A Quick Safety Note For Retail Forex

Regulators regularly warn that forex and leveraged products can carry significant risks, especially when dealing with unauthorised firms or scams.

Luxembourg’s financial regulator, the CSSF, maintains a public warnings section and also publishes investor warnings related to forex and similar high risk products.

The CSSF has also published warnings about specific entities it says are not authorised to provide investment services in or from Luxembourg.

Conclusion

To wrap it up clearly, what currency does Luxembourg use? Luxembourg uses the euro (€), currency code EUR.

If you are looking at this from a trading perspective, the fact that Luxembourg uses EUR also means its currency is deeply linked to the global forex market, where EUR pairs like EUR/USD are closely watched by traders worldwide.

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