What is EMU

nari

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

kriki

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.

nari

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
Finally I understand what EUR is =D>

nari