Dáil Éireann Debate, Tuesday - 10 March 2015
281. Deputy Denis Naughten asked the Minister for Agriculture, Food and the Marine the implications for Irish food exports of the Chinese currency devaluation; the steps being taken to try to insulate the food sectors from further currency devaluations; and if he will make a statement on the matter. [10416/15]
View answerRather than the Chinese currency devaluing against the euro, in fact the euro has devalued against the Chinese yuan over the last year. The current rate of the euro against the Chinese currency is around 1 euro equal to 6.80 Chinese yuan renminbi, a 22% reduction compared to the highest rate in recent years of almost 8.69 yuan renminbi in May 2014. The euro’s exchange rate with the yuan has followed a very similar path to the euro’s exchange rate with the US dollar.
Most international trade with China is in any case carried out in US dollars or in euros. The effects of the euro devaluation against the yuan and the US dollar would offer a boost to Irish food exports to China by making them more competitive.
