The Euro is at its highest point in five months and it’s very bad news for Gustiamo. In fact, we pay our producers in Euros and we pay them either in advance or as soon as we receive shipments. Our producers are so small, they can’t afford to give us longer terms.
Experts say that the dollar is becoming weaker and weaker because the Fed is printing money like crazy and the government is issuing trillions of dollars in new debt to help us out of the recession. It might be good for America, it’s certainly not good for Gustiamo.
Today, we exchanged our dollars at 1.42 to make our payments in Euros. Meaning, it takes $1.42 to buy 1 Euro. Five months ago, we were paying the Euros at $1.20. It’s a disaster. But don’t panic! We are going to try very hard not to raise our prices until the end of the year.