The United States Dollar (USD) has for the first time achieve parity with the Euro, the European Union currency.

This means that for first time since 20 years of the life of the Euro, it is now worth exactly the same value as the USD.

On Tuesday, the euro fail to $1 in exchange rate, representing about 12% decline since the start of 2022, the CNN has reported.

This development came about following fears of recession on the European continent as a result of the spike in inflation in the Euro zone economy.

The worrying rise in inflation in the continent has been blamed on the shortage of supply of energy and the diverse challenges resulting from the war in Ukraine by Putin`s Russia.

This shortage of energy supply have made it rather difficult for the European Union leaders to initiate and manage strategies that will ease off the inflation and fear of recession.

Russia have used the supply of energy to Europe as a means to pressure the continent to bend to Putin`s wishes on the ongoing invasion of Ukraine by Putin`s soldiers.

According to available reports, Europe depends on Russia for up to 40 per cent of their energy needs. The European Union as a body received roughly 40% of its gas through Russian pipelines before the beginning of the war in Ukraine.

Background

According to Wikipedia, the currency, euro was officially adopted on 16 December 1995 in Madrid by the EU members.

It was however “introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1 (US$1.1743).

“Physical euro coins and banknotes entered into circulation on 1 January 2002, making it the day-to-day operating currency of its original members, and by March 2002 it had completely replaced the former currencies.”