As the value of the dollar has plummeted worldwide, businesses in the United States might have an incentive to accept foreign currency for their transactions. For some industries, this is nothing new. In retail, this is somewhat of a first.
But store owners in New York have realized that European tourists have money to burn in the United States, and that they want to take advantage of the favorable exchange rates for them. Retailers have decided that this is a chance for them to sell a lot of merchandise, and that it makes sense to make those transactions easier by accepting the Euro.
While consumers may be worried about the decreased value of the U.S. dollar relative to other currencies, it makes sense to accept some common foreign currencies in the U.S. After all, if foreigners are willing to spend their money here, it only helps our economy. So if retailers have a chance to make that spending easier by accepting the Euro and a few other major currencies, I encourage them to do so.
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
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