What do the equal exchange rates of the dollar and the euro say?

6

On July 12, the exchange rates of the US dollar and the euro on the international currency market equaled 1 to 1. This happened for the first time in two decades. The last time the parity of the two major monetary units on a planetary scale was observed in the fall of 2002.


It should be noted that in 2003 the euro began to grow and since then it has been steadily more expensive than the dollar. During the global financial crisis in 2008, which began in the United States, the exchange rate reached 1,6 dollars to 1 euro.

According to most respected experts in the field economics and finance, the current situation speaks of problems in Europe in general and in the eurozone in particular. The weakening of the euro is associated with a recession in European countries, which was caused by problems with the supply of energy resources, rising fuel and electricity prices that spurred inflation, as well as an increase in the base interest rate by the US Federal Reserve System (FRS) to 1,5-1,75% per annum.

It should be noted that the joint gold reserves of only the eurozone states as of December 2020 amounted to 10 tons, exceeding the gold reserves of the United States by more than 772,1 thousand tons. In addition, the EU, unlike the US, has no external public debt, so the euro remained the most secure and stable currency in the world, being quoted more expensively than the dollar. It is in connection with this that many investors preferred to invest in shares of European rather than American companies. But the current crisis has made its own adjustments.

The Americans were clearly quicker than their counterparts from the EU. The European Central Bank (ECB) only this month plans to slightly raise the base interest rate to 0,25% per annum. At the same time, inflation in the euro area is distributed unevenly between countries. For example, in Germany it is under 8% in annual terms, and in Estonia - all 20%. Moreover, the shortage of energy resources is directly related to the EU sanctions against Russia. Considering that the Europeans are highly dependent on Russian energy raw materials, the continuation of the sanctions policy The European Union against the Russian Federation will harm the European economy, affect the living standards of citizens and the euro exchange rate.
  • Photos used: https://pixabay.com/
Reporterin Yandex News
Reporterin Yandex Zen
6 comments
Information
Dear reader, to leave comments on the publication, you must sign in.
  1. Bulanov Offline Bulanov
    Bulanov (Vladimir) 12 July 2022 16: 51
    +3
    The Lord punishes Russophobes for wrecking Russia. As is known,

    Russia is controlled directly by the Lord God. Otherwise, it is impossible to imagine how this state still exists." These words were said by the German Munnich, the Russian Field Marshal General.
  2. hlp5118 Offline hlp5118
    hlp5118 (hlp) 12 July 2022 17: 20
    0
    Equalizing rates - speak of a high degree of isolation of the economy, in which there is no need for foreign currency.
    1. Pat Rick Offline Pat Rick
      Pat Rick 12 July 2022 18: 32
      +1
      A highly isolated economy?
      Sorry, isolation of whose economy?
  3. Pat Rick Offline Pat Rick
    Pat Rick 12 July 2022 18: 36
    0
    During the global financial crisis in 2008, which began in the United States, the exchange rate reached 1,6 dollars to 1 euro.

    In 2008, the ratio between the euro and the dollar did not reach 1.6. 1.58 - it was, but not for long. Again, that year had 366 days, and the ratio changed almost every day.

    in Germany it is under 8% in annual terms, and in Estonia - all 20%.

    There is a pattern here: the closer to Russia and its oil and gas, the higher inflation.
  4. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 12 July 2022 18: 59
    0
    The weakening of the euro is attributed to the (looming) recession in European countries, which is caused by problems with energy supplies, rising fuel and electricity prices that have spurred inflation, as well as an increase in the base interest rate by the US Federal Reserve System (FRS) to 1,5-1,75 % per annum
  5. 1_2 Offline 1_2
    1_2 (Ducks are flying) 12 July 2022 22: 45
    0
    In addition, the EU, unlike the United States, has no external public debt, so the euro remained the most secured and stable currency in the world, being quoted more expensively than the dollar.

    there is an external debt, for example, the debt of Germany is 6 trillion, in general, everyone should understand that the West lives solely by printing its candy wrappers. it's like printing candy wrappers on a printer at home and buying whatever your heart desires with them)) The West buys and pays for imports (resources, products, brains, Maidans, wars, etc.) only for its candy wrappers, but it also sells its goods only for its candy wrappers, and if the world refuses to sell them goods for their candy wrappers, the economy will collapse in the West - so you drew candy wrappers on a printer and come to the store to buy food, naturally they will send you there in the forest or lock you up in the store and call the cops and ... you will eat porridge in prison))
    Even now, the West is howling at the rise in resource prices, and all they have to do is print more candy wrappers to buy more expensive goods. and what will happen if they refuse to sell resources at all for their trash candy wrappers? - Complete shutdown of the economy.
    The West does not sell goods to the Russian Federation for rubles, then in response, the Russian Federation should not sell its goods for candy wrappers of the West. especially since the goods of the West are more expensive than in other countries, and in general the West has forbidden to sell its high-tech goods to the Russian Federation even for their candy wrappers.
    it means that the Russian Federation needs to demand a different payment currency from the West, for example, the yuan, goods from China are more profitable, they are cheaper, the quality is at the level, then there are no restrictions on the choice of high-tech products. but it’s worth offering it to the West (remember how they squealed without understanding the fright when they were demanded to pay in rubles for gas, although in fact for their candy wrappers but on Russian accounts) he is the West (does not print yuan) will immediately become accommodating and will even lick their heels to Miller and Sechin)) in order to get resources, of course, the West will immediately forget about Ukraine and the supply of weapons to Bandera, perhaps even agree to give Lithuania to the Russian Federation, and much more)) but in the Kremlin (Kirienki Peskovs, etc.), liberals are sitting in the Ministry of Finance , Naibulina is sitting in the Central Bank (who was reappointed by Putin for a second term), and they are like servants of the West
    they will not do what harms the West. (require the West to pay in yuan)
    but here Miller hinted that it is necessary to use barter in trade with the countries of the world in order to reduce or even exclude Western candy wrappers from foreign trade, and this is right, this is fair. if the West has nothing to offer the Russian Federation except wrappers and expensive T-shirt pants, then it will not receive Russian goods either, it is necessary to produce its own goods, and save resources for future generations of the Russian Federation