Euro reaches parity against US dollar; exchange rate drops in Maldives

For the first time in 20 years, the Euro (EUR) hit parity with the US dollar; meaning the two currencies are worth the same.

The Euro hit an exchange equivalent of USD1 on Tuesday, July 12, which was down by 12 percent since the beginning of 2022.

The European Union (EU) which received approximately 40 percent of its gas through Russian pipelines before the war, is currently attempting to reduce dependence on Russian oil and gas.

On the other hand, Russia has throttled back gas supplies to some of the EU countries and had recently constrained the Nord Stream pipeline to Germany by 60 percent.

Owing to the parity between the Euro and US Dollar, the exchange rate difference was reflected against the Maldivian currency; Rufiyaa as well.

The Euro (EUR) usually has an exchange rate difference of 1 EUR against MVR 16.14 on an average basis, which however, dropped as low as MVR 14.52 owing to looming economic recession.

This drop in the exchange rate of Euro against Maldivian Rufiyaa was first observed on June 27, which continued until July 12 before temporarily bouncing back to MVR15.41 on July 13.

However, the exchange difference had since slipped to 1EUR against MVR15.37, after which it slightly bumped to MVR15.39.

At the time of reporting, the exchange rate for both US dollar and Euro against the Maldivian currency is approximately the same; owing to the two foreign currencies reaching parity.