The Euro (EUR) has reached parity with US Dollar (USD) for the first time in 20 years; meaning that the two currencies currently hold the same worth in value.
On Tuesday, 12th July, trade news outlets report the Euro had hit an exchange of USD1, down about 12% since the beginning of 2022 over fears of recession in the continent coupled with high inflation predictions and energy supply uncertainty owing to the Russia-Ukraine conflict.
The European Union (EU), which receives roughly 40% of its gas through Russian pipelines before the war, is currently attempting reduce its dependence on Russian oil and gas imports.
On the other hand, Russia has restrained its gas supplies to some of the EU countries recently, while it had cut the flow in the Nord Stream pipeline to Germany by 60%; all factoring towards a drop in Euro (EUR) value.
The exchange of 1EUR was equivalent between a range of MVR16.03 to MVR16.29 generally prior to the global economic tensions and oil value volatility.
However, at the exchange front Euro value dropped against Maldivian Rufiyaa from its usual exchange rate difference to hit as low as MVR14.52 beginning on 27th June which continued until 12th July.
The Euro value temporarily pushed up to 1EUR against MVR15.41 on Wednesday, 13th July before dropping to 1EUR against MVR15.37.