The word "欧元" (Ōuyuán) for "Euro" is formed by combining two meaningful characters: "欧", which is an established abbreviation for Europe (from "Ōuzhōu" 欧洲), and "元", which is the standard Chinese term for a primary unit of currency (like the dollar "美元" or the Japanese yen "日元"). Therefore, the term is constructed through a direct and logical semantic composition, meaning "European currency unit", to designate the single currency of the European Union.