Using the new Euro vs Local Currency
Sep 6th, 2000, 07:38 AM
#1
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Using the new Euro vs Local Currency
Just curious. I have not been to Europe since 1998 (fall) and will be returning to France and Belgium this November. Recent visitors, please let us know how much the new Euros are used versus local currency. In other words, can one just convert US $ to Euro and be able to make do, or is this still not widely accepted. I am thinking mainly of areas outside of the major tourist cities and sites. If the Euro is widely accepted then this does simplify the money exchange process - just convert US $ to Euros and take off...or is this not good to do just yet during this time of transition? <BR>Any input/reports/experiences will be greatly appreciated.
Sep 6th, 2000, 08:14 AM
#2
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Put your mind at ease: the Euro is not yet a currency and will not become so for some time ahead. It is used for inter-business calculations at this stage of its development and transition. Many European currencies are or will be tied to the Euro. Over the past 18 months, the Euro has fallen by about 25 per cent against the dollar and this fall is reflected in those currencies. Your dollar today goes much farther than it did 18 months ago, in other words.
Sep 6th, 2000, 08:24 AM
#3
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The euro does exist and is now the official currency of Germany, France, Belgium, Luxembourg, Netherlands, Spain, Italy, Portugal, Austria, Ireland and Finland. Greece will probably join in January 2001. <BR>However, euro banknotes and coins will be introduced in January 2002. Before that date, just forget about the new currency for any practical use. The "old" banknotes and coins of the currencies of the countries mentioned above are still used for transactions until early 2002, but are offically just "units of expression" for the euro.
Sep 6th, 2000, 04:31 PM
#5
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Above posters are correct. No Euro currency yet. <BR> <BR>One nice thing thoough is that most prices are now posted in local currency and the Euro price to get people used to the Euro. This is handy because at present the US Dollar and the Euro are close to a 1 to 1 relatioship. If you can afford the price posted in Euros the price in dollars will be a little less, but very close. Check out the exact relationship before you leave on your trip and you won't have to worry about the mental calculations for things as Euro and US are so close in value.
Sep 6th, 2000, 05:35 PM
#6
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Bob, you have been misinformed. The Euro closed today at a new low, at around 88-89 cents to the dollar. When it was introduced in early 1999, it was $1.20. Money traders said today that they saw no reason why the Euro would not sink to around 80 cents in coming months.
Sep 6th, 2000, 05:58 PM
#7
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I was in Spain, one of the Euro countries, in Aug 2000. All prices and transactions took place in the local currency (pesetas). You will do everything in the local currency, including credit card transactions. Credit card vouchers always showed the Euro equivalent, but went through the system in pesetas. Frequently, merchants posted the Euro equivalent price, which certainly helped in Spain where the exchange is around 180 pesetas to $1. Keep in mind that the euro exists, but does not begin circulating in the form of notes and coins until January 2002. In November 2000, there won't be any place where you would convert US $ to Euros except here, to buy travelers cheques in Euros (more on that later). <BR> <BR>The relationship of the Euro to each local currency (franc, peseta, mark, etc.) is fixed and will never change. Euro vs. dollar continues to vary. So how the dollar does against the Euro will be reflected in kind in the dollar rate against the local currency. <BR> <BR>Although I saw posts on this forum recommending against it, it may interest some that I did carry American Express Travelers Cheques denominated in Euros. This was done primarily to act as a backup to my primary use of ATMs and credit cards, which I recommend. As it turned out, the rate I got to buy Euros at a local credit union beat the rates I got from the ATM withdrawals and credit card charges. While Euro TC acceptance is far from common at this point, I had three TCs and was able to get the official Euro-peseta rate for all of them. Two merchants accepted a Euro TC at the official rate, and the American Express office in Madrid gave me the official rate with no commission.
