Euro devaluation a boost to Irish food exports to China

The euro has devalued against the Chinese yuan over the last year and is a significant boost to Irish exporters, according to the Minister for Agriculture Simon Coveney.

He said the current rate of the euro against the Chinese currency is around €1 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 Minister said the euro’s exchange rate with the yuan has followed a very similar path to the euro’s exchange rate with the US dollar.

He said 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, he said.

According to Bord Bia international markets, outside the European Union, were the star performers in Irish food and drink exports achieving their fifth year of continuous growth in 2014.

Almost one-third (€850 million) went to Asia, of which almost two-thirds were accounted for by China (61%) where exports increased by almost 40% to reach €520 million.