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The European currency has touched the lowest level since the beginning of the year. According to the official exchange rate of the Bank of Albania, the euro started the week depreciating further and is currently exchanged for ALL 119.1.
Experts explain that the weakening of the foreign currency this period is related to seasonal effects with the flow of tourists and immigrants, while adding that another influencing factor in the devaluation of the euro against the local currency is also informal money.
“It has to do with the strengthening of the lek itself, which can also appear in the weakening of the currency, but there are no inherent reasons for a strengthening of the lek in these months. On the other hand, the euro has weakened in relation to other currencies. There remains the third factor that has to do with the money market in Albania. As a result of the large amount of euros in circulation that is also related to the season, where over 90% of tourists come mostly from the euro area, but also as a result of the amount of informal euros that come from different routes. The addition of this large amount of euros is reflected in the devaluation of the currency”says Adrian Civici, expert on the economy
According to Adrin Civici, in addition to seasonal trends, exchanges between currencies have already entered a new cycle influenced by the general global situation. The euro, he adds, is expected to return to the level of 120 lek after the effects of the tourist season are over.
“Forecasts are difficult due to some influencing factors, but now the balance is 118,119, 120 lek making a long-term balance. The fact that new structural balances are created in exchanges between currencies is also influential. Even more so now in the inflationary period, when central banks are following austerity policies. We have entered a new balance of currency exchange and seasonal factors.”
Throughout this year, the euro reached its highest level at the beginning of March, reaching over 127 ALL, mainly driven by the start of the war in Ukraine, which brought panic and confusion to the international markets with the strong increase in the price of raw materials.
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