• Deanna Clark-Esposito

Dollar-Euro Exchange Rate Reaches Parity - Why This Matters For Importers And Exporters



On Wednesday, July 13th, for the first time in two decades, the United States Dollar and the Euro had a one-to-one exchange rate and since then not much has changed. With the crazy economic start to 2022, the Dollar has managed to appreciate against the Euro to the strongest it has been since the turn of the century. Following massive interest rate hikes by the U.S. Federal Reserve, the Dollar is looking quite a bit stronger than the Euro.


This has a massive potential impact on the U.S. import/export business. When the dollar appreciates against a foreign currency, Americans buying foreign products with dollars are getting a huge discount. This is because during the foreign currency exchange process, dollars are now worth more than Euros.


This means that to buy a European product, Americans are getting a roughly 15% discount compared to recent years. In the import business, Americans have never been in a stronger position to buy products from the EU.


In the export business, however, the same is not true. When the dollar appreciates and allows Americans to get discounts, the opposite is true for foreigners buying U.S. products. European consumers must now pay essentially a 15% markup for American products. This means that for American exporters, consumers in the EU will likely have a harder time affording what were once affordable products.


This phenomenon is not unique to just the EU. As the U.S. continues to raise its interest rates, it is likely that the U.S. dollar will continue to appreciate against foreign currencies whose government are not raising rates at the same speed.


Anyone in the import/export business needs to keep a sharp eye on currency rates through the rest of 2022 and most likely 2023 as the U.S. Federal Reserve continues to raise interest rates. Need help monitoring the potential impact of currency rates on your import/export business? Do not hesitate to contact us for assistance.


Ready to Learn More About CBP, OFAC,

BIS, and FDA? - for free! Details below.


We have dozens (literally!) of videos in our educational library on our You Tube channel related to importing, exporting, US Customs, BIS, OFAC, FDA, NFTs, and so much more. Subscribe to our channel now to stay up to date on the latest on these topics!


Our law firm helps growing companies who import and export comply with government regulations. We love what we do and we take our oath of confidentiality over your matters very seriously. How much? Watch this video to learn about it. CLICK HERE


Wondering "why should you have an attorney on your side?" Click here to watch one of our attorneys, Susan Steinman, break down the critical benefits as to why you want to have one on your side - whether you hire us to help you or another law firm.


Have questions? We are determined to help you.


We listen carefully to clients to ensure our understanding of the legal issues at hand, their factual context, and any limitations that might impact a chosen strategy. Feel free to connect with us using the contact form at the bottom of the Home page or send us an email at contact@clarkespositolaw.com.


0 comments