Here is what it means for Americans that the euro and dollar are equal for the first time in 20 years | Lotal Ghana

 Here is what it means for Americans that the euro and dollar are equal for the first time in 20 years

 

Currency 

As Russia threatens to cut off gas to the west and inflation rates increase, raising concerns about a European recession, the euro and the U.S. dollar are equal for the first time in 20 years.

 

According to Forbes and Greg McBride, chief financial analyst at the New York-based financial firm Bankrate, the impact on imports and exports will be relative, driving up the price of American goods sold in Europe while driving down the price of European goods in the U.S. This will lessen the impact of rising inflation.

 

The approximately same exchange rates between the two currencies, according to McBride, could be a "headwind for multinational corporations," since they can now anticipate a higher profit when converting euros to dollars.

 

European stocks were trading lower at 10 a.m. ET on Tuesday, with the London-based FTSE 100 down 0.29 percent and the German DAX Performance Index down 0.17 percent. However, since then, the indices have recovered, rising 0.18 percent for the FTSE and 0.57 percent for the DAX.

Source: Forbes