on February 27, 2008The Euro has reached new height on Wednesday, for the first time in its history has a value of 1.5225 dollars.
The Euro is not particularly strong, the dollar is weak because of the economic situation of the country. In a way, it will be beneficial for business as US might export a lot more than usual; on the other hand everything that needs to be bought abroad will be particularly expensive.
Europe is also concerned with the strength of the Euro because it reduces its competitiveness on the world market.
Some companies have decided to stipulate an exchange rate at the signature of contract, this is backed by banks who act as 'insurance companies', because by the time the delivery arrives the exchange rate might have fluctuate so much that the benefices are lost.
No comments:
Post a Comment