Published on :
The parity between the euro and the dollar, expected for weeks, has finally been reached. This had never happened since 2002. A depreciation of the single currency which will be accompanied by inflation, more expensive imports and a loss of attractiveness for the euro zone.
The symbolic threshold of parity has just been crossed. The euro plunges and the dollar strengthens. Faced with a Europe in the midst of war in Ukraine, weighed down by the risk of a cut in gas suppliesthe US economy appears more robust for investors.
First consequence of this parity: all transactions in dollars will become more expensive for the euro zone. This is called imported inflation. The more a currency depreciates, the higher the import costs.
Since the beginning of the year, the oil bill has thus increased by 8% due to the fall in the euro. Just like imports of other commodities denominated in dollars. An energy bill that will weigh on the trade deficit of European countries.
The tourism sector, the only winner
But it’s not just raw materials: many flows between Europe and Asia are also denominated in dollars, such as electronic components. And if large companies are generally hedged against this exchange rate risk, this is less the case for smaller ones.
Ultimately, the big winner is the tourism sector. The advantageous exchange rate will indeed stimulate tourism from the United States.