The euro is soon expected to hit parity with the U.S. dollar, meaning the two currencies will have a 1:1 exchange rate. That hasn’t occurred since 2002, when the euro was in its infancy.
Triggers for the relative decline of the euro include the ongoing war in Ukraine, which has fueled fear of an energy crunch and recession, as well as U.S. interest rates moving sharply higher, pushing investors toward the dollar and from the euro.
One euro is currently worth less than $1.01 — down 11% from nearly $1.13 at the beginning of the year and down 15% from almost $1.19 a year ago.
Bad news for us Europeans, good news for those of you Americans who are planning a trip to Europe (or, to be exact, to one of the 25 European countries that accept the euro) are getting a 15% discount on purchases today relative to a year ago due to the exchange rate.
https://edition.cnn.com/2022/07/12/investing/euro-dollar-parity/index.htmlMeanwhile, Croatia set to join the euro area on January 1, 2023. The Council of the EU adopted the final three legal acts that are required to enable Croatia to become the 20th member of the euro area and to benefit from using the EU’s common currency, as of next year. Croatia has successfully completed all the required economic criteria and will therefore introduce the euro as of 1 January 2023. The conversion rate between the euro and the Croatian kuna is set at 7.53450 kuna per 1 euro.
