The euro fell to its lowest level in five years against the US dollar on Wednesday as the suspension of Russian gas deliveries to European countries made traders prefer the greenback, a safe haven.
The depreciation of the Euro is therefore linked to the war in Ukraine but also to the increase in interest rates in the United States. It could have a significant impact on Belgians’ wallets. Concretely, ” anything imported outside of Europe will cost more. We are heading for a major energy shock », informs us Bruno Colmant, economist and professor at the ULB.
It is currently impossible to know how the situation will evolve but a further increase in interest rates in the United States and new complications in Ukraine could once again cause the value of the Euro to fall against the American dollar.