The euro/leu currency rate is troubling the furniture manufacturers. Even though the euro fees they receive have increased by approximately 9.7%, the RON (Romanian New Leu) fees have actually decreased.
The value of the exports in the first months of the year have showed an increase by 9.7%, as far as the foreign currency is concerned, in comparison to the similar period of 2004, according to the data from the National Statistics Institute. The furniture manufacturers say that the currency rate, the increase in the price of the utilities and in the price of the used wood have seriously affected their incomes, in comparison to the last year. $53.5 million euros have been cashed in from the export in the first six months of this year, in comparison to the same period of the last year, when 423.2 million euros were cashed in. The average leu/euro currency rate of the Romanian National Bank of the first six months of 2004 was 40,621.3 lei/euro, different from 36,890 lei/euro rate of this year.
"If we do the computation in the national currency of the sums cashed in from the furniture export, we will see the important sums that were lost", Aurel Rizea, the president of the Association of the Furniture Manufacturers in Romania, stated. He says that 6.5 million euros worth of contracts were lost since the beginning of the year and 650 millions have been cashed in during the first eight months of the year.
EXPORT ADDICTED. "The furniture export represents 75% of the production and last yearâs main clients were France (18.3%), Germany (17.0%), Italy (12.5%), Holland (8.1%), Austria (7.6%) or England (7%)", Rizea explained. According to the data supplied by the Association of the Furniture Manufacturers in Romania, 86% of the furniture production went to the EU states last year. The main competitors that threaten Romania in Europe are Poland, the Czech Repu
