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Interesting Trend: South American Banks Increasingly Offering Euro Based Accounts

September 10, 2007

An interesting trend is brewing in South America where we have offices.  With the U.S. dollar’s continued fall, local banks in South America are increasingly offering banking services completely in Euros.  

This even impacts our company and our employees. Basically, we lose twice on our European contracts: once for the conversion to dollars and the second for conversion to local currencies. We also lose a third time when we have to convert from dollars back to Euros to pay our service providers in Europe. As we are gaining an increased number of European contracts, even we are considering opening one of these Euro based accounts, writing our future contracts in Europe based on Euros, servicing our real estate video contracts in Europe out of this account, and only converting to local South American currencies when we must. 

More importantly, what does this trend bode for the future of the dollar? To quote a very close friend, “I’m just sayin’! “

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