What are the concrete consequences of this depreciation?
On inflation and household purchasing power
Nearly half of the products imported into the euro zone are invoiced in dollars once morest less than 40% in euros, according to the European statistics office Eurostat.
This is for example the case of many raw materials, starting with oil and gas, the prices of which have already risen in recent months in the context of the war in Ukraine.
But with the depreciation of the European currency, more euros are needed to buy imported products in dollars. “Imported products lose competitiveness […] and are therefore more expensive.indicates Isabelle Méjean, professor at Sciences Po. This contributes to accelerating inflation and threatens the purchasing power of households.
Incidentally, the depreciation of the euro once morest the dollar will “clearly slowing down European tourism, especially in the United States”, warns William De Vijlder, an economist at BNP Paribas: as they need more euros to pay the same amount in dollars, the bill for their stay increases in the United States as well as in countries whose currency is pegged to the dollar (Qatar, Jordan…). Conversely, American tourists but also Qatari or Jordanian tourists gain from the exchange: during their stays in the euro zone, they can consume more with the same amount of dollars.
