Luxembourg, a small but prosperous European nation nestled between France, Germany, and Belgium, offers visitors a unique blend of historic charm and modern sophistication. As you prepare for your journey to this picturesque country, understanding its currency is essential for a seamless experience. From the medieval streets of Luxembourg City to the rolling hills of the Ardennes, knowing how to manage your money will enhance your exploration of this fascinating Grand Duchy.
In this comprehensive guide, we’ll explore Luxembourg’s currency, delve into its history, and provide practical tips for handling your finances during your Luxembourg adventure. Whether you’re admiring the country’s stunning castles, savoring local delicacies, or exploring its rich cultural heritage, this information will ensure you’re well-prepared for your Luxembourg sojourn.
Currency in Luxembourg
The official currency of Luxembourg is the Euro (€). Luxembourg was one of the founding members of the Eurozone, adopting the currency on January 1, 1999.
Denominations
Euro banknotes come in denominations of €5, €10, €20, €50, €100, and €200. While €500 notes exist, they are extremely rare and no longer issued. Coins are available in 1 cent, 2 cents, 5 cents, 10 cents, 20 cents, 50 cents, €1, and €2 denominations.
Currency History
Before adopting the Euro, Luxembourg used the Luxembourg franc. The franc was introduced in 1854 and was at par with the Belgian franc. Luxembourg officially adopted the Euro in 1999, but it was only introduced as a cash currency in 2002. Between 1999 and 2002, the Euro was used as ‘book money’ while the Luxembourg franc remained in circulation.
Usage Guide
Luxembourg is predominantly a cashless society, with credit and debit cards widely accepted throughout the country. However, it’s advisable to carry some cash for small purchases or when visiting rural areas.
Tips for Travelers
- Card Payments: Most establishments accept major credit cards. Inform your bank about your travel plans to avoid any issues with your cards abroad.
- ATMs: ATMs are readily available in cities and towns, offering a convenient way to withdraw local currency.
- Currency Exchange: While you can exchange currency at banks and exchange offices, it’s often more convenient and cost-effective to withdraw Euros from ATMs using your debit card.
- Tipping: Tipping is not mandatory in Luxembourg as service charges are typically included in bills. However, rounding up the bill for good service is appreciated.
- Price Levels: Luxembourg can be expensive compared to many other European countries. Budget accordingly and look for tax-free shopping options if you’re a non-EU resident.
- Mobile Payments: Many Luxembourgers use mobile payment apps. While these might not be accessible to tourists, they indicate the country’s preference for digital transactions.
- Currency Conversion Apps: Download a reliable currency conversion app to help you understand prices in your home currency quickly.
- Leftover Currency: If you have leftover Euros, you can use them in any Eurozone country or exchange them back to your home currency.
- Commemorative Coins: Luxembourg issues special commemorative Euro coins featuring national motifs. These make unique souvenirs but are also legal tender throughout the Eurozone.
- Exchanging Old Currency: The Banque centrale du Luxembourg still exchanges old Luxembourg franc banknotes for Euros, free of charge, for an indefinite period.
By familiarizing yourself with Luxembourg’s currency and financial practices, you’ll be well-prepared to enjoy all the wonders this charming country has to offer, from its UNESCO World Heritage sites to its picturesque countryside. Happy travels in Luxembourg!
Major Banks In Luxembourg
Just in case you need to use a bank while you travel to Luxembourg, here are the top 10 major banks in the country.
- Banque et Caisse d’Épargne de l’État (Spuerkeess): A state-owned bank known for its stability and extensive digital banking services, making it a reliable option for travelers and expats.
- BGL BNP Paribas: With a strong international presence, this bank offers comprehensive services, including retail banking and wealth management, ideal for those navigating global finances.
- Société Générale Luxembourg: Focused on private banking and securities services, it caters to business travelers and high-net-worth individuals.
- Deutsche Bank Luxembourg: A branch of the global Deutsche Bank network, offering corporate and investment banking services for international clients.
- Banque Internationale à Luxembourg (BIL): The oldest bank in Luxembourg, providing personalized services for expats and travelers.
- ING Luxembourg: Known for its user-friendly online banking platform, perfect for managing finances while on the move.
- Banque de Luxembourg: Specializes in wealth management and private banking, catering to international clients with diverse needs.
- DZ PRIVATBANK S.A.: Focuses on private banking and asset management, appealing to affluent travelers and investors.
- Intesa Sanpaolo Bank Luxembourg: Offers corporate and investment banking services, ideal for business travelers with international operations.
- Banque Raiffeisen: A cooperative bank offering personalized services, suitable for long-term residents or expats seeking local expertise.
