France has special monetary relations with Monaco based on various legal instruments, for which, prior to the introduction of the euro, banknotes and coins issued by France were legal tender in Monaco. The coins issued by Monaco were only legal tender there. Monaco has no currency or central bank. journaldemonaco.gouv.mc/Journaux/2020/Journal-8512/Ordonnance-Souveraine-n-8.334-du-5-novembre-2020-modifiant-les-annexes-A-et-B-de-l-Accord-monetaire-conclu-le-29-novembre-2011-entre-l-Union-europeenne-et-la-Principaute-de-Monaco France and Italy are leading the negotiations and will conclude the agreements in accordance with Article 111, paragraph 3 of the EC Treaty. This agreement does not require the ECB or national central banks to include the financial instruments of the Principality of Monaco in the list of securities eligible for monetary policy operations of the European Central Bank System. France and Italy will submit the draft agreement for advice to the Economic and Financial Committee. If the Commission or the ECB, which will participate fully in the negotiations, or the Economic and Financial Committee, believes that the agreement should be submitted to the Council, the agreement is only reached when the Council has taken a decision in accordance with Article 111, paragraph 3 of the EC Treaty. Prior to the introduction of the euro, the French Republic and the Principality of Monaco were bound by bilateral agreements in the monetary and banking sector, in particular by the Franco-Monegasque Convention of 14 April 1945 on exchange controls and by the neighbourhood agreement of 18 May 1963 agreement on monetary relations (Monaco, San Marino, Vatican and Andorra) On 21 October 2004, the Council adopted a decision establishing that the necessary conditions for the opening of negotiations with the Principality of Andorra were met. The European Commission informed Andorra of the Community`s willingness to reach an agreement on monetary issues and proposed to negotiate such an agreement. With the introduction of the euro, it was necessary to redefine monetary relations with neighbouring countries that did not have a national currency, but which used the old national currencies of euro area member states such as Monaco, San Marino and the Vatican.

Monetary agreements have been concluded to define the conditions under which these countries can use the euro. They were also allowed to mark a number of euro coins, which are now coveted by collectors. In 2003, Andorra also called for such a monetary agreement. Monaco is part of the EU ZOLL through an agreement with France and is managed as an integral part of France.