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.

the euro lowkey fell off pic.twitter.com/33vFM1acrD

— rahul (@0interestrates) July 3, 2022

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 and dollar are worth the same for the first time in 2 decades pic.twitter.com/yDIYNjy9UT

— Wall Street Memes (@wallstmemes) July 11, 2022

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.

Me trying to figure out why it matters that the euro and the dollar reached parity pic.twitter.com/Ei8DV4Glac

— Gas Station Barbie (@DarbraDawn) July 12, 2022

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.

americans when the dollar and euro hit parity pic.twitter.com/G1N4it7q8V

— derek guy (@dieworkwear) July 11, 2022

americans when the dollar and euro hit parity pic.twitter.com/HQDIU0hN20

— derek guy (@dieworkwear) July 12, 2022

The dollar and euro at parity pic.twitter.com/mUNCg0TX8B

— Thomas (@eboys_world) July 12, 2022

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

#Euro Holders Actually 📉#inflation #EuroDollar #BITCOIN pic.twitter.com/kji10jkZ06

— Pytha🔰 (@Pytha_x) July 12, 2022

What does #euro-#dollar parity mean for #cryptocurrency ? Even as a European I got used to tracking my holdings in US$. So, today I switched my portfolio-viewer for a moment to euro and suddenly crypto winter seems a bit less harsh. pic.twitter.com/sC4sWDOtUm

— Mala Giore (@MalaGiore) July 6, 2022