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The euro and the U.S. dollar reached parity in value for the first time in 20 years. Russia’s invasion of Ukraine has caused an economic crisis in Europe, looming the possibility of a recession on the continent.
According to figures from Trading Economics, the euro experienced a drastic drop starting in February, when it hovered around $1.13, although its price had been in slow decline since last year. Today, one euro is equivalent to one U.S. dollar.
The fall seems to have accelerated in recent months after Russia threatened to cut energy supplies to European countries in retaliation for sanctions imposed by the West against it.
At least 12 European Union countries have undergone a partial or total reduction of Russian oil and gas supplies. As a result, European companies and consumers will have to pay more for the goods and services they import, while their exports will become cheaper.
This is the first time that the dollar and the euro had reached parity since 2002 when the European currency reached a record low of $0.99.
Tomás Lugo, journalist and writer. Born in Venezuela and graduated in Social Communication. Has written for international media outlets. Currently living in Colombia // Tomás Lugo, periodista y articulista. Nacido en Venezuela y graduado en Comunicación Social. Ha escrito para medios internacionales. Actualmente reside en Colombia.