Moneydance's Multi-Currency Capabilities
Moneydance was originally designed to provide a way to deal with multiple currencies in an easy and flexible manner. You can access the list of currencies using the Tools->Currencies/Exchange Rates menu. Currencies can be added, removed or modified from this list. The attributes of a currency, such as the current exchange rate, or the exchange rate at any date in the past, can also be modified. You can even make up your own currencies, as long as the "Currency ID" (the standard, three letter identifier for currencies such as USD, GBP or EUR) is unique. You might want to make up your own currency if, for example, you would like to track something other than money (maybe jellybeans or shiny pebbles?) using an account in Moneydance.
Every account and category in Moneydance is assigned a currency upon creation. Every transaction is represented in terms of the currency of the account in which it occurs. Because Moneydance is a double-entry system, every transaction touches at least two accounts or categories and therefore may represent values in multiple currencies. In the instance where a transaction records a transfer of funds from an account in one currency to an account in another currency, Moneydance will provide an option to set the exchange rate for that transaction, usually defaulting to the exchange rate between the two currencies at that point in time.
Every entry field that expects an amount can automatically convert amounts based on exchange rates. For example, when entering the amount of a transaction in a EUR (Euro) account, entering "123 USD" in the amount field will automatically convert and replace one hundred and twenty three US Dollars with the equivalent amount in Euros.
The Moneydance home page displays the list of currencies in your data file along with the current exchange rates. We recommend trimming the currency list to include only the currencies that you expect to encounter.