Whenever you set off on a holiday or vacation in a foreign country, it’s absolutely vital that you have the right money with you and enough of the correct currency. If you’re planning a ski holiday in Andorra, that’s just as true as for any other holiday destination.
To help you understand which currency Andorra uses and other important Andorra currency facts, such as how to convert Andorra currency to pounds (GBP), we’ve put together this handy guide to using money in Andorra, one of the most unique countries on the planet.
What is the official currency in Andorra?
Without further ado, let’s address the main question of what is the currency of Andorra. The answer is that the official currency of Andorra is the euro, which has the currency code EUR and the currency symbol €. So, if you’re ever asked does Andorra use euro, the answer is a simple “yes”.
What’s interesting about the fact that the currency in Andorra is the euro is that the principality is not a member of the European Union. So, why does Andorra use the euro? Well, Andorra has a great relationship with its European Union neighbours France and Spain, which surround the microstate on either side, in addition to sharing a lot of culture and history with both these EU countries. As such, there is generally free movement between Andorra and its Pyrenees Mountain Range neighbours of France and Spain and, to make this as easy as possible, the euro is also the currency in Andorra.
Currency exchange tips for tourists visiting Andorra
If you’re going on a holiday in Andorra, you might be keen to learn a few currency exchange tips. Remember that, because Andorra uses the euro, the Andorra currency symbol is also that of the euro, so you’re looking for EUR or € on any currency exchanges.
The main tip is that you can exchange almost any currency once you’re in Andorra, but that it’s advisable to do so before travelling. This is because you can usually find a better rate if you look online before you jet off.
Also, in these modern times, you can pay by card or mobile payment apps in most establishments, and the euro to dollars exchange rate isn’t too tricky to work out, meaning you shouldn’t be afraid to use the same payment methods as you would back home.
One final tip is about when you’re returning home after your holiday. Even if you’re not expecting to return to the microstate any time soon, it probably doesn’t make sense to convert Andorra currency to pounds because you’ll be able to use any leftover euros whenever you visit another European country that uses it. Furthermore, you’ll have to pass through either France or Spain when leaving Andorra, and euros are needed in both those countries too.
History and evolution of Andorra’s currency
Let’s spool back a little in time to discuss the history and evolution of the currency of Andorra, since you might be wondering did Andorra ever have its own currency. The answer to that is that Andorra has long considered its neighbours when it comes to money.
Given that the history of this country is so deeply linked to its relationship with both France and Spain, and to the age-old question of which country did Andorra belong to, it makes complete sense for any discussion about what currency does Andorra use to also be related to the neighbours.
The short version of the history of Andorra is that, in the 13th century, treaties known as the Pareatges were signed to establish shared sovereignty over Andorra by France and Spain. This led to a co-principality status, with the Bishop of Urgell and the French head of state being the co-princes of Andorra, even to this day.
In terms of currency in Andorra, the Spanish peseta and the French franc were both considered to be legal tender and were both used as the Andorra currency before euro. That changed when these two currencies were replaced in France and Spain, with the introduction of the euro across the continent at the start of the 21st century. Then, since 2002, the euro has been the official currency of Andorra.
There was another development in terms of currency in Andorra in 2011. In that year, the country reached a monetary agreement with the European Union, one which meant Andorra could issue its own Andorran euros starting in 2014.
The role of the euro in Andorra: Benefits and challenges
Now that you know what is the currency of Andorra and why, let’s finish by discussing a few of the advantages and disadvantages of Andorra using the euro.
In terms of benefits, the main one is that it is very easy for tourists to come to the country and to find familiar coins and notes, not having to worry about the currency Andorra uses, as might be the case in some other countries. Furthermore, the fact that Andorra uses the exact same currency as its continental neighbours makes Andorra’s famously competitive shopping prices stand out even more.
There are negatives to Andorra using the euro, most notably with the limitations this puts on the government in terms of monetary policy. However, it is widely agreed that the good outweighs the bad and that it is a net positive that the currency of Andorra is the euro.