What Are Effects Of China's Export Trade As The Sharp Fall Of The Euro?
Jul 25, 2022
The euro fell to $0.9953 Wednesday, the lowest level in nearly 20 years, as the conflict between Russia and Ukraine, energy shortages and economic recession hit the euro.
The depreciation of the euro is directly linked to the rapid appreciation of the US dollar after the US Federal Reserve raised interest rates, but there are multiple factors behind it, including worries about the European economy, experts said Thursday. At the same time, the recent two-way fluctuations of the RMB exchange rate are at a reasonable level and have not been significantly affected.
In the first quarter of this year, the total value of imports and exports between China and the EU reached 1.31 trillion yuan, up 10.2%. Zhao yongsheng said that the depreciation of the euro is conducive to the export of goods to China, especially to export-oriented economies like Germany, which will bring some changes to China-Eu trade but will not affect the structure of China-Eu trade due to exchange rate changes.
We should further leverage the role of the China-EU currency swap, expand the scale of RMB and Euro-denominated settlement, and protect our bilateral trade and investment from the artificial exchange rate risks caused by the use of third-party currencies, such as the US dollar.
