Breaking News: Euro currency crashes to N416, down 12%

Dollar Equals Euro For The First Time In 20 Years, $1 =€1.

The exchange rate between the Euro and the Naira has crashed to N416 as at 1:40pm Nigerian time. This means that the euro is at its weakest against the Naira since winter of 2019/2020. This means the value of Euro has been cut down to 12% as opposed to the beginning of the year when it traded €1 = N475.

While the news may be positive for Nigerians conducting business and traveling in Europe, it is a worrying sign for the health of the global economy.

The euro's decline was effectively facilitated by Europe’s self induced energy crisis with Russia. The Kremlin supplied nearly 40 percent of Europe’s gas before the "military operations" with Ukraine, and the bloc has since attempted to reduce dependence on fuel from the Russia.

European Union members alongside USA, Canada, Australia and Japan had earlier levied heavy and devastating sanctions and partial bans against Russian fossil fuels. However, attempts to source for oil and gas from other countries has stained the supply chain, skyrocketing cost of living across Europe.

In retaliation, Russia decided to cut back it's fuel supply to European countries that sanctioned them and refused to pay for gas in Roubles.

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