The Euro Drop Explained, Here Is Lebanon’s Part Of This Overseas Crisis

The Euro Drop Explained, Here Is Lebanon’s Part Of This Overseas Crisis

Seeking A Stable Currency

The Lebanese people have been struggling to find a stable exchange rate for both the USD and the Lebanese Pound (Liras) since 2019.

Accordingly, they had to find another universal stable currency to rely on, which is the Euro, to exchange their Liras in order to ensure that their money will not lose its value.

And many Lebanese did so.

Then, on Thursday, February 24, 2022, Russia invaded Ukraine, leading the EURO value to start dropping, creating another panic situation among the Lebanese who had exchanged their Liras and USDs for Euros.

On February 24th, €1 EUR was equal to $1.119. As of today, August 26, 08:00 AM EDT, the EURO rate is €1 = $1.0006, according to Bloomberg.

Why Is The EURO Falling Below Dollar Parity

The general worsening of the Eurozone’s outlook amid soaring gas prices and fears of Russia cutting off natural gas supplies is dragging down the shared currency.

The huge reliance of major economies, such as Germany on Russian gas, has left investors unnerved, with economists forecasting a much quicker recession in the Euro area than in the US.

Fears that Russia may restrict Europe’s supplies of energy have increased the risks of a recession in the Euro area.

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