Exchange Rate: The Euro-Dollar Parity and its Snowball Effect on Trade and Inflation

Exchange Rate: The Euro-Dollar Parity and its Snowball Effect on Trade and Inflation

 

The US dollar and the Euro reached parity on 12 July 2022. This is not without repercussions on the foreign exchange market. Thus, a weakening of the Rupee cannot be ruled out. The impact will also be felt on Mauritius’ import and export activities.

International Economics Consulting Ltd’s CEO, Paul Baker, was interviewed for Business Magazine. He explains the strengthening of the Dollar and the weakening of the Euro, given the current global economic conditions. The combination of rising energy prices, transport costs and the weaker Rupee will drive up the price of importing goods. On the other hand, local exports will benefit from a strong Dollar.

Please find the full article here.

 

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