The birth of the Euro is without any doubts a historical success for the European Union. Even if at the beginning it was not completely accepted, after some years the euro was more accepted that critised in most of european countries.
Almost 30 years after the creation of the European Economy Community in june 1988, the european council confirmed that il would take part of Europe with a unique currency: euro.
The euro was officialy launched on January 1st, 1999 fixing the exchange rates of the eleven nations that adopted it firstly. Finally on January 1st 2002 euro starts to circulate during the lapse that was taken to issue the currency.
Six months after that, in July of this same year official currencies are taken out of each country so that euro becomes the asset of the members of this new step.
After some time, euro began to have more success and many countries saw in euro the possibility of improving their economies, and that’s why since its appearance many nations have continued taking part of the euro market that is becoming stronger every minute.

What is happening to the exchange dollar/euro?, What do we have to analise whenever we talk about this king of rate exchange between dollar and euro?. Firstly, international situation shows us that the exchange dollar/euro is one of the most commercialised at financial markets as actually they are the currencies that have more strenght.
Another aspect to consider is the fight that we are having in the exchange dollar/euro, and that answers to political/economical factors that during history have been produced between these foreign powers.
Even if today all over the world dollar is used to carry out big commercial and finacial transactions,this answers to the simple reason that with american currency crude can be bought. If this trend changed at any moment, the die is cast.
It must be considered that since euro appeared on January 1st, 2002, world financial balance has been inclining to the euro. Euro zone was composed by eleven countries firstly, and actually there are 25 nations that are part of it, and there are still 3 countries that are waitng for entering in this group.
World principal markets show every day that the exchange rate dollar/euro is the most attractive. Today dollar is still keeping its power as it is the currency that allows you to buy crude, even if there is a trend that shows a replacement by the euro, situation that will show a new way at the world financial market.

The pound was the most popular forreign currency until 1945. Until that date the international trade was regulated by this currency value, where all the transactions have to be through England and it was done with that currency.
The end of the Second World War was the end of british control and so did the pound as reference currency. Bretton Woods arrangement established that American Dollar would be the currency able to regulate all the commercial transactions in the world.
Actually, the pound is falling its value. Euro introduction in 1999 made the pound lose ground in the principal economic decisions of the world. This situation has made British financial institutions look for a solution for this problem, and one of the measures that banks have taken is to reduce the cost of interest rates to the level of the European Union, and so, be able to compete with the raising Euro. In some years it would be very different for the pound to be as it used to be some years ago.

During centuries mankind has had different ways of payment to do commercial transactions.At the beginning, species exchange, which was called barter. Some years later, value was added to the metal, with which they were able to buy or sell goods and services and it was called currency.
During many centuries this kind of exchange has remained and even if the foreign currencies that have handled the world trade have changed, actually Dollar is the one that has more force in buying and selling goods among different world countries.
The collapse of the European principal countries during the Second World War gave the United States the opportunity to become a world power and to made dollar become the reference currency. As in past times, when dollar was the one to give support to issue currency, today Dollar is the one that offers these conditions.
Even though dollar has not the same hegemony today as it used to have in the ’50s when Bretton Woods was established. Reconstruction of countries that were destroyed during the Second World War and Euro appearance during the 90’s give an scene not very favorable for an american economy with deficit balance of trade and with an important weapon carreer.
During the 90’s the difference between american exports and imports was around 12%, since 1999 the raising imports rate raises until 27%, this made the dollar reduce its value until reaching in 2004 24%.
This deficit in the balance of trade shows that United States finance others economies. The question is how long will the United States tolerate this rate and what will happen if the dollar continues to reduce its value?