Europe's economy is suffering as the euro continues to reach record highs against the weakening dollar, but the tumbling U.S. currency isn't necessarily bad news for the Czech economy
Published:
12 December 2004 y., Sunday
Europe's economy is suffering as the euro continues to reach record highs against the weakening dollar, but the tumbling U.S. currency isn't necessarily bad news for the Czech economy.
The dollar's weakness is hurting Europe by making its exports less competitive, but it has not affected Czech trade because the majority of the country's external exports stay within Europe. The Czech Republic has benefited from the weak U.S. currency, which is making expensive American imports cheaper here, but the country could see some negative effects in the future if key European economies continue to weaken.
The dollar has fallen 40 percent against the euro in the past two years. The euro reached a record high $1.32 on Nov. 25.
The crown, which is influenced by the strength of the euro, broke through its previous high of 25 Kc to the dollar at the end of October and has since strengthened to below 24 Kc to the dollar.
Economists have attributed the dollar's decline to investor concern over the country's high budget and trade deficits. The U.S. current account deficit, which includes annual trade as well as the balance of financial flows, is now some $600 billion.
President George W. Bush has said he's in favor of a strong dollar, but many observers believe the U.S. government would like to keep the dollar weak to strengthen the economy by making U.S. exports cheaper abroad and American products more competitive at home.
Šaltinis:
praguepost.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
The financial and economic crisis has shown that reckless behaviour of banks and other financial institutions can have serious and costly consequences for Europe's economy and its people.
more »
Local services that create jobs and improve energy efficiency received a boost Thursday (2 September) when MEPs on the Industry, Research and Energy Committee approved plans for more investment.
more »
The European Commission approved the first financing decisions under the EUR 264 million 2010 allocation for the so-called Vulnerability FLEX mechanism to help the most vulnerable African, Caribbean and Pacific countries cope with the impact of the global financial crisis and economic downturn.
more »
The European Commission has today updated the list of airlines banned in the European Union to impose an operating ban on one air carrier from Ghana and to place operating restrictions on another air carrier from that country.
more »
The European Commission today approved an application from Denmark for assistance under the European Globalisation adjustment Fund (EGF).
more »
Algirdas Šemeta, EU Commissioner for Taxation, Customs Union, Anti-Fraud and Audit, will open tomorrow an international conference at the Shanghai World Expo 2010 on building bridges to facilitate trade between China and the EU.
more »
Moldova is set to receive an EU grant of up to €90 million to help it through the financial crisis, following a vote at Parliament's Committee on International Trade on Monday.
more »
Important notice: since May 2010 business surveys data are classified in accordance with an updated version of the Nomenclature of Economic Activities (NACE rev. 2) causing a potential break in series at this date.
more »
75% of Europeans think that stronger coordination of economic and financial policies among EU Member States would be effective in fighting the economic crisis, according to the Spring 2010 Eurobarometer, the bi-annual opinion poll organised by the EU.
more »
The European Commission has extended until the end of the year the liquidity support scheme for banks in Slovenia.
more »