One Euro Is Now Worth One Dollar, Leading To A Flood Of Memes

July 12th, 2022 - 12:02 PM EDT by Aidan Walker

7 comments | Contact Newsroom

Left: an Italian-American man saying "buongiorno," Right: a graph showing the slump of the Euro's value

The U.S. dollar and euro, which was first implemented back at the start of 1999, are worth the same amount for the first time in 20 years.

On the one hand, this means that if you’re in the United States and you’re planning to buy a product or take a vacation in Europe, now is a great time to do it. On the other hand, it is a very bad sign for the European economy and for the world economy overall.


Like the dollar (and other currencies) the euro has faced increasing inflation. Before Russia's invasion of Ukraine in late February, 1 EUR was worth $1.12 USD. The currency has steeply declined since then, as the world economy drifts further into bear market territory and concerns over the price and availability of energy haunt Europe and the U.S.

Most blame the euro’s “lowkey falling off” on geopolitical worries. Currently, the Nordstream pipeline, which brings Russian gas to Europe, is on a 10-day maintenance pause, but many fear that it will shut off indefinitely.

Already, many European countries (in response to the war in Ukraine) have either chosen to import less Russian gas (and face the economic consequences) or had Moscow limit the amount of gas it ships them. Because of policy choices made over the years that tie European energy supplies to Russia, gas is Putin’s main source of leverage over Europe — if the Russian gas stops flowing, countries like Germany will need to ration gas and shut down parts of their economy.


The euro’s decrease in value shows that many in the markets think something bad like this will happen. Since the economy is globally connected, the consequences will be felt everywhere.


As investors dumped the euro for the dollar, memers marked the important moment. It seemed to be a proud day for Americans and for the transatlantic alliance.


Cryptocurrency enthusiasts also shared their insights about the economy as the "dollar euro parity" discussion trended across social media.



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baldarek
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baldarek

in reply to Timey16

>So games would cost us 60€ when they were $60 in the US… meaning we paid the equivalent of $72, even though our wages are lower on average…

Except in normal countries taxes are already included into the price of a thing. So when you pick a product with a 60€ price tag, you pay 60€ for it at the checkout, but when an American picks a product with a $60 price tag they usually end up paying more than $60 for it. Perhaps it doesn't quite level out, but still.

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