Converting currencies is a common task for individuals and businesses alike. When working with Euros and Pounds, Microsoft Excel provides a handy function called EUROCONVERT to facilitate these conversions. This article will guide you through using the EUROCONVERT function to seamlessly convert Euros to Pounds and other Eurozone currencies within Excel.
While the function name might suggest a direct Euro to Pound conversion, it’s important to understand how EUROCONVERT operates. It’s designed primarily for conversions within the Eurozone, utilizing the Euro as an intermediary for conversions between member currencies. However, understanding its mechanics is crucial for anyone dealing with European currencies in Excel.
Understanding the EUROCONVERT Function
The EUROCONVERT function in Excel is a powerful tool designed to handle currency conversions for countries within the European Union that have adopted the Euro. It allows you to:
- Convert a number to Euros.
- Convert a number from Euros to a Euro member currency.
- Convert between two Euro member currencies using the Euro as an intermediary – a process known as triangulation.
This function relies on fixed conversion rates established by the EU, ensuring accuracy based on official figures.
Note: If you encounter a #NAME? error when trying to use EUROCONVERT, you may need to install and load the Euro Currency Tools Add-in.
How to Install and Load the Euro Currency Tools Add-in
- Go to the File tab in Excel and click on Options.
- In the Excel Options dialog box, select Add-Ins.
- At the bottom of the window, in the Manage dropdown, choose Excel Add-ins and click Go.
- In the Add-Ins Available list, check the box next to Euro Currency Tools and click OK.
- Follow any on-screen instructions to complete the installation if prompted.
EUROCONVERT Function Syntax
The syntax for the EUROCONVERT function is as follows:
EUROCONVERT(number, source, target, full_precision, triangulation_precision)Let’s break down each argument:
- Number (required): This is the numerical value you want to convert. It can be the number itself or a cell reference containing the value.
- Source (required): A three-letter ISO currency code representing the original currency. For Euro member currencies, refer to the table below. For our focus on Euros to Pounds, when converting from Euros, the source would be “EUR”.
- Target (required): A three-letter ISO currency code for the currency you want to convert to. For converting to Euros, this would be “EUR”. While “GBP” (British Pound) isn’t directly supported as a Euro member currency within the function’s core design, understanding Euro conversions is fundamental, and you can use the Euro conversion as a stepping stone in broader currency calculations.
- Full_precision (optional): A logical value (TRUE or FALSE) that determines how the result is displayed.
- FALSE (or omitted): Displays the result using currency-specific rounding rules (see table below). Excel uses calculation precision for calculations and display precision for showing the result.
- TRUE: Displays the result with all significant digits from the calculation.
- Triangulation_precision (optional): Required when converting between two Euro member currencies. It’s an integer (3 or greater) specifying the number of significant digits for the intermediate Euro value. If omitted when converting between Euro member currencies, no rounding occurs on the intermediate Euro value.
Valid Currency Codes for EUROCONVERT
The EUROCONVERT function supports the following ISO currency codes for Eurozone countries:
| Country/Region | Basic unit of currency | ISO code |
|---|---|---|
| Belgium | franc | BEF |
| Luxembourg | franc | LUF |
| Germany | deutsche mark | DEM |
| Spain | peseta | ESP |
| France | franc | FRF |
| Ireland | pound | IEP |
| Italy | lira | ITL |
| Netherlands | guilder | NLG |
| Austria | schilling | ATS |
| Portugal | escudo | PTE |
| Finland | markka | FIM |
| Greece | drachma | GRD |
| Slovenia | tolar | SIT |
| Euro member states | euro | EUR |
Currency-Specific Rounding Rules
When using Full_precision = FALSE or omitting it, EUROCONVERT applies specific rounding rules based on the currency:
| ISO code | Calculation precision | Display precision |
|---|---|---|
| BEF | 0 | 0 |
| LUF | 0 | 0 |
| DEM | 2 | 2 |
| ESP | 0 | 0 |
| FRF | 2 | 2 |
| IEP | 2 | 2 |
| ITL | 0 | 0 |
| NLG | 2 | 2 |
| ATS | 2 | 2 |
| PTE | 0 | 2 |
| FIM | 2 | 2 |
| GRD | 0 | 2 |
| SIT | 2 | 2 |
| EUR | 2 | 2 |
Important Notes on EUROCONVERT
- Trailing zeros in the result are removed by Excel.
- If the source and target ISO codes are the same, the function returns the original number.
- Invalid parameters will result in a
#VALUE!error. - EUROCONVERT does not apply number formatting; you’ll need to format the cell separately for currency display.
- This function cannot be used within array formulas.
Examples of EUROCONVERT in Action
Let’s look at some practical examples to understand how to use the EUROCONVERT function. Imagine you have the following data in your Excel sheet:
| A | B | C | ||
|---|---|---|---|---|
| 1 | Amount | Source | Target | |
| 2 | 1.20 | DEM | EUR | |
| 3 | 1.00 | FRF | EUR | |
| 4 | 1.00 | FRF | EUR | |
| 5 | 1.00 | FRF | DEM | |
| 6 | Formula | Description (Result) | Result |
Here are formulas using EUROCONVERT and their results:
| A | B | C | |
|---|---|---|---|
| 7 | =EUROCONVERT(A2,B2,C2) |
Converts 1.2 deutsche marks to Euros with 2 decimal places calculation and display precision. (0.61) | 0.61 |
| 8 | =EUROCONVERT(A3,B3,C3,TRUE,3) |
Converts 1 franc to Euros using 3 decimal places for calculation and display all significant digits. (0.152) | 0.152 |
| 9 | =EUROCONVERT(A4,B4,C4,FALSE,3) |
Converts 1 franc to Euros using 2 decimal places for calculation and display precision (default rounding). (0.15) | 0.15 |
| 10 | =EUROCONVERT(A5,B5,C5,TRUE,3) |
Converts 1 franc to deutsche marks using 3 decimal places intermediate calculation precision and displaying all significant digits. (0.29728616) | 0.29728616 |
Note: These examples assume specific conversion rates (1 Euro = 6.55957 French Francs and 1.95583 Deutsche Marks). EUROCONVERT uses the official EU rates, which may be updated by Microsoft if rates change. For the most up-to-date information, consult European Commission publications about the Euro.
While EUROCONVERT Doesn’t Directly Convert to Pounds…
It’s important to reiterate that EUROCONVERT is designed for Eurozone currency conversions. Direct conversion from Euros to Pounds (GBP) isn’t its primary function. For EUR to GBP conversions, you would typically use current exchange rate data and perform a standard multiplication or utilize more comprehensive financial data add-ins or web services within Excel.
However, understanding EUROCONVERT provides a solid foundation for working with currency conversions in Excel, especially when dealing with Eurozone currencies. It showcases Excel’s capabilities for handling financial calculations and highlights the importance of using the correct functions and data for accurate currency conversions.
Conclusion
The EUROCONVERT function is a valuable tool within Microsoft Excel for anyone working with Eurozone currencies. While not directly for Euro to Pound conversion, mastering it offers essential skills for currency handling in spreadsheets. For converting Euros to Pounds, remember to use current exchange rates and appropriate formulas or Excel tools designed for broader currency exchange. By understanding EUROCONVERT and its limitations, you can confidently manage currency conversions within your Excel workflows.
