The euro is the currency adopted by some countries in Europe since 2002. The symbol that represents the euro was developed by the European Commission and it is inspired in the letter epsilon of the Greek alphabet. They have chosen that symbol as a reference to the initial of Europe and the other two parallel lines mean the stability in the euro zone. The official international abbreviation for the euro is EUR and has been registered at the International Organization of Normalization (ISO).
In July 2002, the euro exceeded for the first time the exchange rate with the American dollar, since then it has been in a similar situation. In Dicember 2006, the euro took the place of the dollar as the most used currency for cash payments, during that month around 614.000 million of euros were circulating in the world, while dollars were about 588.000 millions in euros.
There are also some states that help the use of the euro, as they don’t agree with the politics of the United States in issues as economy or international diplomacy, and that in many cases, does not mean having a pro-european position, but an antiAmerican. Iraq for example, before being attacked by the United States, exchanged its dollars to euros. Some social sectors saw in this exchange one of the reasons why Bush intervened Iraq to recover dollar and avoid the Organization of Crude Exporters Countries change its currency to euro, as if that happened the consecuences could be very bad for the United States.

The sale of foreign currency is without any doubt the most profitable business all over the world. Foreign currency sale allows you, without investing too much money, raise your profits in not many time.
When you decide to sell foreign currency this decision can have two reasons: The first one is that you have taken this decision because you want to sell foeign currency, suppose dollar, as its value is falling and you want to buy other stronger currency to avoid the devaluation of your savings.
The second reason is that you decide to enter in this circle of buying and selling foreign currency so that your profits continue being in the financial market and make foreign currency sale become more profitable.
In foreign currency sale there are many political and economical factors that must be considered whenever you decide to do an investment. Knowing how to understand international situation is decisive whenever you decide selling foreign currency.
Any political decision hides an economical reason, and results are seen in the quotation that has foreign currency for its sale and purchase. One of the most important factors is Iraq war. Beyond the reasons showed by the United States about the danger of this terrorist state there were economical factors hidden. Iraq before being invaded by the United States changed dollars per euros, making american currency lose ground, and this was one of the reasons why invasion began, even if the Busch administration speach was about the danger of the world terrorism.
These factors that influence on the foreign currency sale and in the quotation that these have. If you know how to interpret the situation factors you have an advantage. This will allow you to sell foreing currency before these continue falling and keep your money safe in some place out of risk and less volatile.

The dollar has ruled for more that 60 years the commercial and financial activities of the whole world, but after some years its control has been reduced. Dollar has lost its importance, as it used to be responsible for 80% of the reserves in the 60’s and not it become to be responsible for only 65%.
As we can notice, actual dollar has become 35% less important that Euro since 2002, and if you compare it with other world currencies, dollar has lost about 17% of his value.
Anyway, even though what is shown by numbers, actual dollar has reduced its value in history, it is not the first time that this happen, that’s why those that keep being optimistic about actual dollar say that this is only temporal and that dollar will be a strong currency again as it used to be in the 60’s.
There are also those who think this is not a very favorable situation the one of the actual dollar. In this financially unbalanced world, United Stated consumes and imports while Asia saves and exports. This economy circuit is not good for the american economic indicators. But, what would happen if United States stops financing other economies not buying their products anymore? Probably, there would be a disorder that would produce the crisis of those nations that have inputs because of the deficit of the american balance of trade.

The uncertainty situation that lives the financial world is not news and noone surprises when the mass media say that Ben Bernanke (President of the Federal Reserve of the United States), could reduce the interest rates again. Anyway, this measure that was set upduring the month of September have not given the result that economists have been waiting, the dollar continues falling and loses ground in front of the other foreign currencies.
The most accepted initiative at the beginning had as an aim promote the economy and prevent it from recession, although this measure made that investors and speculators take their funds to countries with major interest rates. The medine was worse than the illness and the logic of the supply and demand market acted in a determinant way as every day less people wanted to have dollars, and so the value of the dollar continued falling.
The American government refuse having a weaker dollar and even the Secretary of the United States Treasure, Henry Paulson, declared that”a firm dollar is what our nation needs”, anyway, reality shows another thing as the dollar continue falling everyday. Since today, American authorities have done nothing to support the dollar, as for example, raise the demand of this foreign currency through an arrangement with other governments to buy dollars. A more exhaustive analysis about the dolalr situation would say that the Bush government does not intervene the market to be able to recover from the deficit that has the commercial balance of the United States.
Many economists believe that this situaton is temporary and that the dollar will be stabilized when the deficit in the commercial balance reach an equilibrium, at the same tiem the politics regarding to the American currency will continue being the same.

The depreciation of the currency of a country many times make other currency become stronger.This happens with the relation between the yen and the dollar, both currencies are favored when some of them suffers a change.
After the crisis that suffered Japan during the Second World War, the Asian country stayed in a situation of extreme poverty, after some time it was able to recovery from this adverse scenario and became one of the strongest economies in the world, as a currency as the yen that supports it.
There is an old African proverb that says that when “the elephants fight, the one that suffers is the grass”. This is what happends frequently when there are changes on the exchange rates, or a currency become stronger, there are nations that are favored and others that suffered their consequences. The yen and the dollar are the two sides of the same coin, on the one hand the currency of the northern country has falled, while the yen has increased its value abruptly.
In the exchange yen and dollar, the devaluation of the American currency has favored the American companies that export product abroad and are bought by the nations that see the advantage on the devaluation of the dollar. The appreciation of the yen has been against the interests of the Asian countries as their debts and imports are in the most cases from Japan. This situation provoked the claims of many Asian countries that asked the Japanese government to have less debt payment conditions in yen nominal value to compensate partly the difficulties that they should face since the increase of the yen value, and Japan refused it.
The decision of strengthen a currency and devalue the other has its origins in the economic politic that wants to follows the government of the moment. The yen and the dollar are in an extreme competence system, and so the depreciation of a currency is considered an instrument that is useful to reduce the costs of the exports of a country and be efficient to penetrate at the foreign markets.