Which institution is the central bank of the euro area and began operating in 1998?

The European Central Bank is the central bank of the euro area and began operating in 1998.

The ECB was established on June 1, 1998, in Frankfurt, Germany, ahead of the euro’s introduction as an accounting currency in 1999 and as cash in 2002. It works with the national central banks of euro-area countries through the Eurosystem.

Its primary mandate is to maintain price stability in the euro area. The ECB also conducts monetary operations, manages foreign reserves, oversees parts of the banking system, and helps ensure the safety of euro payments.

The ECB is not the central bank of every European Union member. Only countries using the euro participate in the Eurosystem, while other EU countries retain their own national currencies and central banks.