For companies within the euro-zone, the euro will lead to the elimination of these barriers and increase the potential supplier base. For companies in pre-in countries, it will make it easier to deal with multiple EU states sharing one single currency. A European supplier of another European company currently invoices in US dollars due to the fact that the raw material in question is initially quoted in US dollars. With the use of the euro as the reference currency in all supply and sale contracts, the company will avoid exposure to fluctuations of the US dollar and will be able to focus on improving its competitiveness and on more effectively managing its costs. It will no longer be necessary, for example, to review daily balances in multiple currencies.
Most companies try to match their planned payments or receivables with term purchases of currencies.
These hedging methods bear a cost, integrated in the currency's forward exchange rate. Such methods can only serve to cover certain cash flows within a limited time frame. The financing available following the changeover to the euro will depend on banks' general policies and abilities to present very specific and innovative projects. The introduction of the euro has already lead to larger, more liquid, and more differentiated capital markets. The adaptation to the euro significantly simplifies treasury and cash management and provides substantial opportunities for savings.