The Euro and Triangulation

Note: As of January 2002, the Euro Triangulation method for converting between currencies belonging to EMU members is not needed for present and future currency exchanges. However, the method is still available in Siebel Business Applications, as are the old currencies, so that historical data can be maintained accurately. The following description applies only to historical data needing conversion prior to the 2002 switch to the Euro for the EMU member countries.

If a country is a member of the European Monetary Union (EMU), then convert its currency to other currencies through the Euro. This currency conversion is called triangulation, and is used when either currency being converted has EMU Triangulation checked.

For example, if you are converting from USD to DEM and DEM has EMU Triangulation checked, then you must set up the conversion rates between US dollars and the Euro and between the Euro and US dollars. You do not have to check the EMU Triangulation field for USD. The DEM is converted to EUR according to the fixed exchange rate set by the European Monetary Union, and then the amount in EUR is converted to USD according the exchange rate you set up.

The EMU Triangulation field is already checked for the following European Monetary Union member nations: Germany (DEM), Belgium (BEF), Spain (ESP), France (FRF), Ireland (IEP), Italy (ITL), Netherlands (NLG), Austria (ATS), Portugal (PTE), Finland (FIM), and Luxembourg (LUF). However, you can check or clear this field. For example, if the United Kingdom or Sweden joins the EMU, then you can check the field for that currency.

To calculate triangulation conversion, the conversion rate is always expressed to six significant figures. Conversions from one national currency unit into another currency are made by:

  1. Converting the monetary amount from the national currency unit into the Euro.

  2. Rounding the result to not less than three decimal places.

  3. Converting the result to the target national currency.

  4. Rounding the result to the lowest subunit of the target national currency, such as pfennig for the German mark or centime for the French franc.

Note: The EMU Triangulation field is checked only for currencies that are subdivisions of the Euro.