Reporting currencies are intended for use by organizations that must regularly and routinely support statutory and legal reporting of both transactions/journals and General Ledger account balances in multiple currencies--other than the ledger currency. If you only need to report account balances in a currency other than your ledger currency, you can use General Ledger translation.
Note: Reporting currencies are not intended as a replacement for the General Ledger translation function.
Consider using reporting currencies when any of the following conditions exist:
You operate in a country that is part of the European Economic and Monetary Union (EMU), and you choose to account for and report both the euro and your National Currency Unit (NCU).
You operate in a country whose unstable currency makes it unsuitable for managing your business. As a consequence, you need to manage your business in a more stable currency while retaining the ability to report in the unstable local currency.