Check this parameter if the new currency has a fixed exchange rate in relation to the company currency. This may be the case if both your company currency and the new currency are part of the EMU monetary union. If the new currency is not part of the EMU, then you should not check this parameter.
Please Note! This setting should never be selected if your company currency is not included in the EMU, i.e. if your company currency is SEK. As long as Sweden is not participating in the European Monetary Union (EMU), all foreign exchange rates should be entered against the SEK. You should check the setting Company Currency Part of EMU's Monetary Union?, under the section Economics under the System tab in the Settings procedure, if the company currency is a part of the EU's Monetary Union.