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Old February 22nd, 2006, 06:18 PM  
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redcar's Forum Picture
Join Date: December 15, 2004
Location: Ireland
Gender: Male
Blog Entries: 20

well now in fairness to the EU, the Euro is doing far better than the US Dollar on the curreny markets, and in comparison to the British Pound the Dollar is pityful. which gives a very good visible indication of the economic strenght of the European Union.

No, in fact I must disagree, it does not. The values of currencies are not absolutes, but relative to each other. So it is not necessarily good if a currency has "more value". What is good is that the value of a currency remains stable for a long time. That makes traders trust that currency and use it as "common money" for international transactions. Transactions between, say, Poland and Thailand happen in dollars, because of that reason.

well the value of currencies are very important, it shows a countries buying power, the greater the currency the more they can buy and therefore greatly benift. also as for stability the Euro has traded at roughly €1 : $1.20 for nearing 2 years now i consider that pretty stable and trustworthy. and as for Poland they are set to join the Euro i think in the next year.

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