Advantages Of The Euro Currency Essay Example | Topics and Well Written Essays - 1250 words

Advantages Of The Euro Currency - Essay ExampleThe great advantage of the Euro is that there is regional funds stability due to the fixed exchange rates. The Euro has led to outlay stability within the EU characterized by low inflationary trends and stable public finances. This has increased the believability of the Euro due to large currency zone thus stability against the speculation. This credibility is reinforced by a common monetary policy that is governed by the European Central Bank. Currency stability has encouraged backing as there is a reduction in both external and internal currency instability. The adept currency eliminated the take chancess involved in exchange rates making importers and exporters better placed to make straight growth projections in foreign markets. Businesses no longer pay hedging costs as insurance policy against currency fluctuations. They are also spared against the costs incurred as a take of accounting across currencies. weakened businesse s are the greatest beneficiaries as they would otherwise incur greater costs as a result of currency fluctuation, unlike large multinationals that enjoy the benefits of economies of scale. This has encouraged entrepreneurs and Small and Medium Enterprises (SMEs) operators to trade beyond geographical boundaries and expand their businesses (BBC News, 1998). The single currency has encouraged tourism as people are spared the task of currency exchange thus red tape procedures are eliminated. This means that tourists are not at risk because of carrying huge sums of money and do not encounter extra charges because of commissions (BBC News, 1998). It has enabled individuals to trade beyond their geographical locations and canvas prices. The internet has made this even better as one can easily shop for the topper offer on a product or service.