Yeah, finally happened what was inevitable (though they couldn’t pick a worse time), the Euro is going back to the point where it started 3 years ago.
What this means :
1. Bad for European export economy, but better for the import. If Europeans want to buy dollars, now’s the time.
2. Bad for the Europeans who did not believe in the EUR and have bought stocks with dollars.
3. Good for the American companies who rely on export mostly.
But,
4. People start believing in the Euro. Especially the Germans didn’t like the idea of a weak Euro (Italians were used of that :D), but a strong Euro will also benefit us on the long term.
The decline of the USD has more to do with the weakness of the American economy than the strenght of the European economy, which is more stable but less dynamic.
By: mongu - 17th July 2002 at 22:02
RE: EUR beats USD
In recent years, research has indicated that export success isn’t entirely dependent on the strength of the currency.
In Britain, the Pound has been extrememly strong against the Euro and Dollar for years, but our exports haven’t suffered as much as you would expect.
What happened with the world’s two big currencies reaching parity had a little to do with political will and a lot to do with the over valued Dollar and comparatively under valued Euro. It’s been on the horizon for a while.
By: Geforce - 17th July 2002 at 07:39
RE: EUR beats USD
I don’t know about oil but I do know that trading of arms will be mainly Euro, and this is also a big business.
By: EHVB - 16th July 2002 at 18:16
RE: EUR beats USD
I never liked the Euro in the past, and I still don’t like it today. However I am very glad it “took” the dollar. It is however still a long way untill it is at the 1.dollar 16, it was when it was made “operational”.
What I should like to see is that the Euro could swap places with the dollar. Today, most oil and other things are paid in dollars, should be nice if the Euro took this role, putting the dollar in second place.
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July 16, 2002 at 7:02 am