Preparations are therefore already in progress. The Cabinet has set up a forum in which central and local government, the financial world, the business community and consumer organisations are represented. This 'National Forum for the Introduction of the Euro' was established in early 1996 and concerns itself with the exchange of information, identifying and solving problems, and coordinating information campaigns. The main reason for creating a single European currency is to liberate trade within Europe from the barriers and costs arising from having different currencies. Exchange rates are an uncertain factor in international trade as the value of a currency can fall or rise from one moment to the next.
Newspapers publish exchange rates on a daily basis.
The exchange rate of a particular currency tomorrow may give a very different complexion to the transactions a company concludes today. Frequent major fluctuations in exchange rates can seriously disrupt trade. That is why Europe wants to introduce a single currency. In addition, the euro will allow the financial markets in Europe to expand and become more transparent, thereby enabling companies and individuals to borrow money more cheaply. Consumers, too, will benefit, for they will no longer have to incur costs exchanging money.