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Currency?
I've been thinking about going to the Europe on a Vacation but I am confused to how their currency works. According to Google 700 American dollars would be around 500 in Europe? I'm so confused, Why is it less? How exactly does this all work?
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currency value is always changing . So check the dollar and euro value when you want to exchange.
check out latest currency value at [Link](Mouse over link to see full location)
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Matt, A short course in how the present economy effects or monetary exchange.
At one time our currency was backed by and supported by gold. Today the dollar floats against other monetary currencies and is backed by the good faith and credit of the U.S. Government. The British Pound is one of the few Currencies still backed by a precious metal, or Gem stones, that being Silver.
Dollars are now traded on a currency exchange just like the stock exchange and other commodities. Based on the daily exchanges is how the dollar fairs against other currencies. Not long ago our Canadian neighbors dollar was only worth $0.50 of an American Dollar. For people who lived near the border it was far cheaper to shop in Canada for a while. Now the currencies are about equal.
Because of the large deficit the American government has, the one that was in the news this summer. The dollar has not traded well and will most likely continue to trade poorly until other countries have more confidence in our monetary system.
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It depends where in Europe you're going. What you looked up was probably what the exchange rate was for the Euro. The Euro is used by these countries; [Link](Mouse over link to see full location).
Not all countries use the Euro. The UK still uses the pound, Denmark (where I currently am) uses the krone, etc.
Regardless of where you go in Europe, the exchange probably isn't going to work out in your favor. Europe is an extremely expensive place and the dollar doesn't convert very well into anything. For example, a can of coke in the US costs maybe 75 cents to a dollar from a 7/11. In Denmark, it's the equivalent of 2-3 dollars. Apply that monetary logic to larger purchases like food and lodging and transportation, and it's going to cost a good deal to vacation in Europe. Save up.
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