Simplifying the concerns about Euros
 

From recent postings, I gather many folk planning to travel between now and early spring are concerned and confused about the replacement of national currencies with the Euro. Hopefully the following will help. A few years ago, each of the countries adopting the Euro "fixed" the value of that country's currency to the Euro. That value has not and will not change. Here are the fixed values. Each equals one Euro:<BR>13.7603 Austrian shillings <BR>40.3399 Belgian or Luxembourgois francs<BR>5.94573 Finnis markkas<BR>6.55957 French francs<BR>1.95583 German marks<BR>340.75 Greek drachmas<BR>0.787564 Irish punt<BR>1,936.27 Italian lira<BR>2.20371 Netherlands guilders<BR>200.482 Portuguese escudos<BR>166.386 Spanish pesetas<BR><BR>At present, the Euro is the approximate equivalent of ninety American cents.

Wes: You confused me with the statement about the value will not change. A few years ago the Euro was fixed at $1.00 and now floated to $.89. This would then effect the rates of all other currencies based on a dollar. Or am I figuring this all wrong.

The value of the Euro will float. The value of individual European currencies were fixed versus the Euro.<BR><BR>While European's may have some confusion with the Euro, Americans and Canadians will have an easier time figuring out prices.

The Euro was never fixed at $1. The hope and expectation was that the Euro would float around $1.15 to $1.20. Boy were they wrong. It has been south of $.90 for almost a year now. Very good for American tourists.

Janis,<BR>I would agree with you that tourists have received the benefit of the Euro depreciation versus the dollar.<BR><BR>But, American industry suffers because our goods become more expensive as our currency rises versus the Euro. Also, corporate earnings decline as a drop in the Euro Year/Year has dilutive effect on corporate earnings.<BR><BR>Also, the decline in the Euro may hurt tourism to America as prices for EEU citizens would rise.<BR><BR>I guess it just depends on your point of view. As my Freshman Macro Economics professor said, "There is no free lunch."<BR><BR>

Ryan - you will note I only said it was good for American Tourists. Of course it causes other areas big problems. But this is a travel board - hence the info for tourists.

Janis,<BR>Yes, of course you are right, it is a travel board. Just thought I'd spur some intelligent dialogue with others.<BR><BR>Again, happy holidays.

This is a very important dialog.

please replace "float" with "sink"

Anyone worried about the "float" of the euro against the US$ should remember that currencies have always moved up and down against each other. One of the main predecessors of the euro, the German Mark, was worth 28 US cents in 1985, and 62 US cents in 1996. Today it is worth about US 44 cents. Nothing out of the ordinary.