The major currencies that
exist in the foreign exchange market are the euro and the dollar. As we embark
on a journey most countries accept these currencies as a means of
payment.
The euro
It is the currency of the European
Union. Its presence in the international monetary relations has been a
great success. Thus, since its incursion into the currency market has always
occupied the top.
At present 13 member
countries of the EU have this currency. Between absences are, for example, the
United Kingdom, Denmark and Sweden.
There are also countries that
are outside the EU, which have adopted the euro as their currency. This
is the case with the Vatican and San Marino, among others.
In mid-2002 the euro has
exceeded parity against the dollar and
since then has remained ahead of the American currency. In addition, several
countries have failed to promote the use of the dollar and have begun to
support the euro.
Reference to
the value of change
In implementing a change of
money should take into account the exchange rate is the amount of money
needed to achieve the national currency of another country, known as currency.
The exchange rate can be
divided into:
· Real: is the change in
goods and services from one country by another.
·
Rated: the possibility of changing currency from one
country to those of another.
European Central Bank
It is the agency responsible
for conducting monetary policy of a country and thus to fix the exchange rate
systems. Depending on their performance for these systems can be
differentiated:
· System of fixed
exchange rate: it is designated by the European Central Bank so rigid.
· Systems change
variable or flexible: the relationship of currencies are fixed according to
supply and demand market.
Ways to
change currency
The main way to change
currency is approaching a bank, which can get the necessary amount of dollars
and pounds right away. If you need other currencies other than there is a
delivery time.
These entities besides the
exchange rate set forth by the European Central Bank, usually charging a
commission depending on the amount of foreign exchange changed. In addition,
the client must have a current account with the institution where they sought
change.
Along with this method of
obtaining foreign exchange, there is also the possibility of doing so through a
dealer, who engaged in the sale of money abroad.
Such establishments resorted
to the Central Bank of the country in which they are requesting the exchange
rate. Then apply to such a small commission.
Remarks
With VISA cards are available
cash at ATMs abroad without delay paying a small commission. This is a form of
direct change.
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