Rue de la Banque No. 62, May 2018
The cost of foreign currency financing of exporting firms is a major factor in their competitiveness on non-euro area markets. However, this cost is particularly sensitive to the financing conditions on the currency market.
In order to quantify the role of foreign currency financing costs on competitiveness, we analyse the effects of a drying-up of dollar funding in the second half of 2011 on the export performance of French firms on the US market.