Multiple Currency Conversions in Excel 2007

Currencies around the world are as varied as the countries that produce them.

Converting currency from one form to another is relatively simple math, but converting multiple currencies can become complicated quickly. Excel 2007 can make the conversion process automatic. You can create a static conversion spreadsheet based on exchange rates, you can import exchange rates from the Internet and have Excel update them automatically or you can use the Euro Convert Add-in for Excel for converting European currency.

Static Sheet

If all you want to do is get a general idea of how multiple currencies convert, you can create a static conversion sheet in Excel. The basic formula for converting currency is the value of the currency multiplied by the conversion rate to the new currency. So if you have the value of dollars in cell A1 and you want to display the converted value in euroa in cell A2 you would type the formula: "=A1*0.721" and press "Enter." Replace the number with the conversion rate for your currency at your time. Repeat the formula for each currency you want to convert.

Import Data

You can create a link to a live website with the conversion rates so that your Excel spreadsheet will always be up to date with the currency conversions. Click on the "Data" tab in Excel 2007 and then click "From Web." A small Web browser will pop up; navigate to the data that you want to import. Some currency conversion sites you might use are x-rates.com, money.cnn.com and bloomberg.com. Once you've found the conversion rate information you want, click the arrow next to the data and then click "Import." Confirm that you wan to import the data in the dialog box and click "OK." The data will be displayed in your spreadsheet. You can then use the conversion rates as the basis of your formulas to show the multiple currency conversions.

Euroconver Function

Excel 2007 comes with an add-in that automatically converts the currencies of the constituent countries in the Euro zone. Install it by clicking on on the Office button in the upper-left of Excel and then clicking "Excel Options." Choose the "Add-Ins" option from the list and then click the "Go" button. Click "Euro Currency Tools" so the box next to it is checked and then click "OK." Now you can use the function in a formula. For example, you would type: "=Euroconvert(A1,DEM,IEP)" to convert the number in cell A1 from deutchemarks to Irish pounds. The Euroconvert function uses the standard Euro conversion rates.

Select Currency Formatting

While it doesn't affect the calculations, it is important to display the results of the conversion in the correct format. Excel has all of the currency symbols that you might need built in. Click on the cell with the currency and then click on the "Home" tab. Click on the arrow in the bottom-right corner of the "Number" section and then select "Currency" from the options on the left. Choose the currency symbol you want from the drop-down menu labeled "Symbol." The currencies are in alphabetical order by symbol, so all of the ones using the Euro symbol are grouped together, for example. Note that you can also type the International Organization for Standardization (ISO) code for the country as a shortcut.

References

• Microsoft Office: Euroconvert Function
• Microsoft Office: Getting External Data

Resources

• X Rates: United States Dollar Conversions
• CNN Money: Conversion Rates
• Bloomberg: Curriencies
• International Organization of Standards Currency: Code Index