Tampa, Florida 2022-07-29 13:32:06 –
For the first time in 20 years, the US dollar is as strong as the euro. There are pros and cons to this news that could impact US business.
“When the value of the dollar is rising, foreigners have to pay more, which makes it harder to buy US products,” said Kishore Kurkarni, a professor of economics.
The dollar is as strong as the euro, so that means your dollar will go a little further when you visit Europe. But on a larger scale, the euro is as strong as the dollar and could impact US exports.
“That’s why our exports are greatly affected,” Kulkarni said. “We don’t export to other parts of the world, but the EU and the UK are our big importers. Buying European goods is pretty important. Now that the value of the dollar is much higher, We don’t mind being more European goods. Cars, such as perfumes, groceries, everything you buy from Europe are cheaper, 20% cheaper. “
After all, it also affects small businesses. The European Market and Deli in Denver mainly sells European products.
“The prices of flour and many other products used in stores have risen significantly,” said Christian Mirkov, owner of the European market. The dollar is $ 9, $ 20 to $ 25. I don’t think the dollar is strong. I think the euro is weak as everything is going on with COVID. Due to the war in Russia, Europe is dependent on Russian gas. “
Companies importing European products can save a small amount of actual products, but transportation and transportation are still expensive.
“Distributors are raising prices, and we’re a bit ahead of the chain, so if you want to stay open, you need to raise prices,” Mirkov said.
The depreciation of the euro is a bit beneficial, but companies like Milkov still hurt when it comes to shipping costs because of fuel.
According to economists, fuel prices and the euro are directly related. The European Union has moved to break away from Russian oil.
“Crude oil is ruining gasoline prices. In fact, some EU countries are considering gasoline rations, which is a serious business. That’s why the euro has fallen to $ 1.” rice field.
SMEs like the European market will see more savings if the euro can be regained, as the war in Ukraine is affecting fuel costs.
“We work with US-based distributors rather than importing directly. You know that shipping prices are higher for them and higher for us,” Mirkov said. rice field.
The euro impact on small businesses Source link The euro impact on small businesses