What is EMU

nari
nari Member Posts: 16
edited 2011-11-07 in NAV/Navision Classic Client
hi, everyone.

i wanna know what EMU is and how it works in GL.

i already googled EMU and found out EMU stands for Economic Monetary Union. So i guess, when you check the box in GL Setup, you can exchange Euro to USD. but i dont know what exactly EMU is.

thanks

Answers

  • kriki
    kriki Member, Moderator Posts: 9,127
    It is used for currencies of countries that will convert their currency to EUR..
    An example of some years ago when the EUR was introduced in the first countries.

    I was in Belgium and used the Belgian Frank (BEF).
    I had the Italian Lire in the currency table (ITL).
    Both currencies will be substituted to EUR. So both need to have the flag. And both had a fixed exchange rate to the EUR (=40.3399 BEF and 1927.39 ITL [if I remember correctly]).
    If I wanted to exchange 1 USD to BEF, how would I do that? You might think I would go from USD directly to BEF. This is the case for non-EMU currencies (e.g. JPY to USD). BUT NOT for currencies connected to the EUR.
    In this case I have to go from USD to EUR and THEN from EUR to BEF.

    No a more current (or maybe future) scenario. Lets say the Danish decided to enter in the EUR next year.

    So you have an entry for EUR-LCY but also for DKK-EUR. When exchanging from JPY to DKK, NAV must first convert JPY to EUR and then convert EUR to DKK.
    Regards,Alain Krikilion
    No PM,please use the forum. || May the <SOLVED>-attribute be in your title!

  • nari
    nari Member Posts: 16
    kriki wrote:
    It is used for currencies of countries that will convert their currency to EUR..
    An example of some years ago when the EUR was introduced in the first countries.

    I was in Belgium and used the Belgian Frank (BEF).
    I had the Italian Lire in the currency table (ITL).
    Both currencies will be substituted to EUR. So both need to have the flag. And both had a fixed exchange rate to the EUR (=40.3399 BEF and 1927.39 ITL [if I remember correctly]).
    If I wanted to exchange 1 USD to BEF, how would I do that? You might think I would go from USD directly to BEF. This is the case for non-EMU currencies (e.g. JPY to USD). BUT NOT for currencies connected to the EUR.
    In this case I have to go from USD to EUR and THEN from EUR to BEF.

    No a more current (or maybe future) scenario. Lets say the Danish decided to enter in the EUR next year.

    So you have an entry for EUR-LCY but also for DKK-EUR. When exchanging from JPY to DKK, NAV must first convert JPY to EUR and then convert EUR to DKK.

    Thank you so much for giving me a clear explanation :D
    Finally I understand what EUR is =D>

    nari

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