Question

What does Dollar parity mean to the Euro? What countries use the EURO as their own currency?

Answer 1

A dollar parity to Euro means that the Euro will be treated at par with Dollar. It implies that 1Euro= 1 USD.

There are many American businesses that operate in Europe. A dollar parity to the Euro would result in making their goods/services more expensive. Moreover, earnings from sales in Europe will be worth less than they used to be for these American businesses. This is ecause they were earlier earning in Euros and on conversion to USD they used to gain a higher return due to foreign exchange rate differences. This gain will be wiped out for them.

On the contrary, U.S. consumers will have to pay lesser when purchasing European imports. The European countries will gain since their goodsand services will become cheaper worldwide. This will directly boost their economies, demand for theur products, higher tourism and also invite foreign capital.

Countries that use Euro as their currency are: 1) Andorra
2) Austria
3) Belgium
4) Cyprus
5) Estonia
6) Finland
7) France
8) Germany
9) Greece
10) Ireland
11) Italy
12) Kosovo
13) Latvia
14) Luxembourg
15) Malta
16) Monaco
17) Montenegro
18) Netherlands
19) Portugal
20) San Marino
21) Slovakia
22) Slovenia
23) Spain
24) Vatican City