How does Colombia affect the euro’s fall below the dollar? – Sectors – Economy

The euro closed on Monday without Parity with the dollara one-to-one exchange rate it had already reached in mid-July, linking it to last week’s losses after a quiet start to the day.

The euro was trading around 3pm local time at $0.9964, versus $1.0045 in late European forex trading hours last Friday. The European Central Bank (ECB) has set the reference exchange rate for the euro at $1,001.

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How does the parity between the euro and the dollar affect

It is estimated that about 50 percent of Eurozone imports denominated in dollars. For this reason, if more euros are now needed to buy imported products in dollars, more is spent and contributes to increasing inflation even more.

In addition, the devaluation of the euro can affect the tourism of Europeans.

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However, the effect is less for Colombia. According to Juan David Palin, director of analysis at Casa de Bolsa, when the euro is trading below the dollar, what that means is that all financial assets denominated in that currency have less value than financial assets denominated in dollars.

“The impact is not that important because our business relationships are not that big. Those who export to Europe They have seen that their income when converting to the Colombian pesos has decreased.”