How Xe can help your business manage its importing from Germany

Germany boasts the most powerful economy in Europe. Each year, trillions of dollars’ worth of goods are imported by nations around the world. While much of this importing happens within Europe by other countries who use the euro, there are many other countries around the world importing German goods that can be—and are—impacted by volatility in the currency markets and fluctuations in currency values. 

What are the top imports from Germany? 

In 2020, $1.378 trillion USD in goods were imported from Germany. The top 10 products representing the highest dollar values were: 

1. Machinery (including computers) 

2. Vehicles 

3. Electrical machinery and equipment 

4. Pharmaceuticals 

5. Optical, technical, and medical apparatuses 

6. Plastics and plastic articles 

7. Articles of iron or steel 

8. Aircraft and spacecraft 

9. Additional chemical goods 

10. Mineral fuels (including oil) 

66 percent of German products were purchased by importers in the following countries (from most to least): 

1. The United States 

2. China 

3. France 

4. The Netherlands 

5. The United Kingdom 

6. Poland 

7. Italy 

8. Austria 

9. Switzerland 

10. Belgium 

11. The Czech Republic 

12. Spain 

While 6 of the countries above use the euro, the other half of the top importers—along with other importing countries that don’t make the top 12—have a currency exchange involved in their transactions. 

Importing from Germany? Xe can help your business 

As you navigate the foreign currency markets, having a knowledgeable and experienced foreign exchange international payments provider by your side is instrumental in protecting your business’s bottom line from increased costs from exchange rate movements. 

At Xe, we know the currency markets. For nearly 30 years, we’ve worked in the currency business and today assist over 13,000 businesses of all sizes across all sectors to manage their FX risk. We can work with your business to help you develop a tailored approach to suit your business’s operations and risk exposures. 

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How did the euro perform last year? 

2020 was a challenge for the euro. As the COVID-19 pandemic hit Europe hard in the early months of 2020, the euro saw similar effects. 

Pound sterling (GBP) 

The GBP-EUR rate started 2020 on a high note, only to plummet from March 2020 through the majority of the year. The onset of the COVID-19 pandemic changed the world’s risk propensity and investors and traders alike sold out of anything risky, the Pound included. At that time, the GBP-EUR was at its lowest point since the 2008 financial crisis. However, events such as eased lockdowns and the Brexit deal helped the Pound to make some gains against the euro. 

US dollar (USD) 

As a result of the COVID-19 pandemic, the USD-EUR exchange rate frequently fluctuated throughout 2020. Though it began the year at a low, it ended the year at 1.22, its highest level observed since January 2018. 

Canadian dollar (CAD) 

Since 2015, the Canadian dollar had been steadily losing ground against the euro (with some occasional jumps).  Though the CAD-EUR rate started 2020 strong, the rate plummeted in February and March of  2020. Though it recovered some ground in the following months, it hit an even greater low in July 2020, though the rate has been on the rise since then. 

Australian dollar (AUD) 

The onset of the COVID-19 pandemic led to the AUD-EUR rate plummeting to a low point in March 2020. However, the rate has been steadily on the rise through 2020 and even into the early months of 2021. 

New Zealand dollar (NZD) 

Like the AUD-EUR rate, the NZD-EUR rate similarly plummeted to a lot point in March 2020. However, ongoing coronavirus recovery in New Zealand bolstered the NZD, and the rate has been on a steady climb throughout 2020 and into 2021. 

How can you prepare your business for market volatility?

The currency markets are volatile, but your business’s bottom line doesn’t need to be. You can get started with your Xe Business account online in just a few minutes. Once you’ve signed up, our team can help you to devise the right strategy for your business and its operations.

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Have you already signed up? Once you’ve completed that process, you’re ready to get a quote for your business. Check out our guide to getting a quote and try it today. 

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