Recession Round The Corner As Euro Hits Parity With US Dollar For First Time In 20 Years
As many have been warning for quite some time now, it seems that it is now clearer than ever that a recession is right around the corner.
For the first time in 20 years, the Euro hit parity with the US Dollar – that means the two currencies are currently worth the exact same amount.
The Euro has gone down even further, hitting $1 – which is around 12% lower than what it was at the beginning of 2022.
This makes it the first time since 2002, and definitely the first time for many young adults from this generation. The last time this happened was back in December 2002, when the Euro had tanked to $1.005.
Currently, it has plummeted all the way down to $0.9998.
The second most sought-after currency in global foreign exchange reserves despite its comparably very young age, the Euro’s record low was $0.82 back in October 2000.
With an energy crisis as a result of sanctions imposed on Russia for the invasion of Ukraine being coupled with an economic slowdown, the European Central Bank has announced it will hike interest rates this month for the first time since 2011.
Just last week, following Russia cutting the flow in the Nord Stream gas pipeline to Germany by 60%, the European giant recorded its first trade deficit in goods since 1991.
What do you make of this?
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