20 years of low!The euro is approaching 1: 1

Reporter Ni Hao

The exchange rate of the euro to the US dollar has reached the lowest level in 20 years. As of the press release on July 12, the exchange rate of the euro to the US dollar fell to 1.0045, and the lowest price in the market was 1.0003 on the day, which was close to the price of the US dollar exchange rate. At the same time, the US dollar index has been maintained above 108, and also set the highest record since 2002.

The United States CNN has reported that since the beginning of this year, the exchange rate of the euro to the US dollar has fallen by nearly 15%. The market believes that a series of radical interest rate hikes, including the central banks, including the Federal Reserve, and the slowdown in economic growth will continue to put pressure on the euro and promote investors to the US dollar to avoid risks. Many market institutions believe that since the Russian -Ukraine conflict, the euro zone economy has faced severe inflation pressure, the prospects of economic growth are not optimistic, and the euro has fallen below the US dollar at a time. It is only a matter of time.

This year marks the 20th anniversary of the euro circulation. In January 1999, the euro was launched as a bookkeeping and transfer currency in the financial market. On January 1, 2002, 12 countries including France, Germany, Italy, and Spain officially launched the euro to replace their currencies. It is reported that the euro to the US dollar was below the parity mark, dating back to November 2002. Right now, the euro exchange rate has almost fell back to the level of its first time. The inherent impression of "euro is more expensive than the US dollar" in the past 20 years will be completely broken with the loss of the euro to the US dollar pricing.

The euro is currently the world's second largest foreign exchange reserve currency. According to data from the World Monetary Fund (IMF), at the end of the first quarter of 2022, the total global foreign exchange reserves were US $ 1.255 trillion, of which US dollar assets were US $ 6.88 trillion, accounting for 58.88%. Some reserve currency. The euro is the world's second largest reserve currency, with a total of 2.34 trillion US dollars, but the global proportion fell from 20.6%at the end of the fourth quarter of last year to 20%at the end of the first quarter of this year.

French International Broadcasting Station reported that today, how to further consolidate and promote European integration 20 years after the emergence of the euro is related to how Europe has a comprehensive competition in China and the United States on the international stage. Unified currencies prevent countries from adjusting the vicious cycle of depreciation or appreciation of currency competition for currency competition for currencies. Some experts believe that this has led to weakening the European industrial chain and the relocation of industrial chains to a certain extent. The emergence of the epidemic shows the need to restore European autonomy more clearly. ▲

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