Fancy a chunk? No, it's not chocolate... It's the future of money (if the euro goes under) (2024)

FAQs

Is the euro a bad idea? ›

By far, the largest drawback of the euro is a single monetary policy that often does not fit local economic conditions. It is common for parts of the EU to be prospering, with high growth and low unemployment. In contrast, others suffer from prolonged economic downturns and high unemployment.

The euro is the second largest reserve currency after the US Dollar. It is also the second most traded currency in the world.

The Euro, in the long run, remains strong as it is set by policies of the European Central Bank. This body sets policies for the whole Eurozone. As it is an independent entity, it is not bound by any government. Therefore, this maintains the Euro's strength overall.

The euro has shown a weakening trend against the US dollar since the start of the year. The decline can be attributed to divergence in inflation trajectories of the euro area and the US, suggesting a continuation of the euro's depreciation relative to the dollar.

A collapsed euro would likely compromise the Schengen Agreement, which allows free movement of people, goods, services, and capital. Each member country would need to reintroduce its national currency and the appropriate exchange rate for global trade.

1. Kuwaiti dinar. Known as the strongest currency in the world, the Kuwaiti dinar or KWD was introduced in 1960 and was initially equivalent to one pound sterling. Kuwait is a small country that is nestled between Iraq and Saudi Arabia whose wealth has been driven largely by its large global exports of oil.

The euro-to-dollar exchange rate fluctuated significantly in 2022, reaching its lowest recorded value since 2008 during that time. Figures were different later in the year, however, with a rate of 1.09 USD recorded at the end of July 23, 2024.

Basic Info. US Dollar to Euro Exchange Rate is at a current level of 0.9149, up from 0.9146 the previous market day and up from 0.8911 one year ago.

Some countries aim to de-dollarize or reduce their dependency on the U.S. dollar, but it is still essential for global business and is a widely held reserve currency. There is no reason to expect the U.S. dollar to collapse in the near future.

What country is a dollar worth most? Some of the countries where a dollar is worth the most money include Mexico, Peru, Chile, and Colombia. It's possible to exchange dollars for local currency in these countries at favorable exchange rates.

What is the strongest currency in the world in 2024? ›

The Kuwaiti dinar is the strongest currency in the world with 1 Kuwaiti dinar buying 272.76 Indian rupees (or, put another way, INR 1 equals 0.003 Kuwaiti dinars). Kuwait is located between Saudi Arabia and Iraq, earning much of its wealth from being a leading global exporter of oil.

It's the first time the two currencies have reached price parity since December 2002—and a sign that investors are worried that a looming economic crisis will hit Europe especially hard. The euro first hit price parity with the dollar in December 1999, just less than a year after its debut at $1.17.

1We believe the euro zone's difficulties can be divided into three categories: the lack of mechanism to combat heterogeneities; the lack of economic policy coordination and the divergence in the functioning of labour markets; the errors of economic policies in their design and their implementation.

Risk-on currencies include the Australian Dollar (AUD), New Zealand Dollar (NZD), Canadian Dollar (CAD), Euro (EUR), and British Pound (GBP). Such currencies are often linked to countries with robust economies and commodity exports.

The common currency imposes a system of central monetary policy that's applied uniformly. The problem is that what's good for the economy of one EU nation may be terrible for another. Most EU nations that have avoided the Eurozone do so to maintain economic independence.

ING Group holds a bullish view on the euro, expecting it to rise to 1.15 against the dollar due to a slowdown in the US economy leading to Fed interest rate cuts. However, it acknowledges that weak eurozone growth could lead the ECB to cut rates alongside the Fed, limiting the euro's appreciation.