Foreign money exchange refers to the buying or selling of a nation's currency in return for another nation's currency. This facilitates import and export trade between countries. The introduction of the Euro currency as the common currency of the countries constituting the European Union has made the foreign money exchange process simpler.
Changes in Exchange Rate and Purchase Costs
In the fast evolving economy nothing remains stable. The currency rates keep fluctuating on a daily basis that increases or decreases your purchasing power. Hence there is a considerable amount of risk involved. The introduction of Euro eliminated fluctuations of currency rates among the countries in the European Union.
Earlier traders on business purposes had to exchange their currency on arrival at a new country. This led to a significant increase in their transaction costs. With Euro, requirement for the commercial foreign exchange between the Euro countries has been eliminated.
Increase in Business Activities
Euro currency consolidates the economies of the countries belonging to the European Union. The stability of currency rates and exclusion of additional transaction costs strengthens the trade activities between countries of the European Union. The procurement costs of foreign exchange brokers are also eliminated. This increases business income that enables you to reinvest the same thereby creating new investment opportunities.