Euro drops for the first time in history to ALL 100.08, depreciates 15% in two years

2024-08-09 18:23:00, Ekonomi CNA

Euro drops for the first time in history to ALL 100.08, depreciates 15% in two

Illustrative photo

The common currency has recorded a continuous decrease during this week, going down on Friday to the level of 100.08 ALL, according to the official exchange rate of the Bank of Albania.

This is the lowest level ever recorded in the exchange of the Euro with the Lek, approaching the limit of 100 Lek.

Since June, the Euro had approached significantly the level of 100 lek, which is also known as a psychological limit, but then the exchange rates were stable, mainly due to the interventions of the Bank of Albania in the purchase of foreign currency. Governor Sejko said in the last conference that the exchange rate has been relatively stable during the last months, reflecting - among other things - a higher level of currency purchases in the market by the Bank of Albania.

But the beginning of August is always accompanied by seasonal effects, as a result of the increase of currency in the market, from immigrants returning to their homeland and in recent years also from tourists, who are bringing currency to the country.

For the period January-August 9, the Euro was exchanged at an average of 101.7 allek, from 111 allek which was the average for the same period a year ago, with a discount of 8.3%.

Whereas in relation to January-August 9, 2022, when it was exchanged at an average of 120 ALL, the common currency is worth almost 20 ALL less, with a 15% drop.

According to market actors, this strong devaluation in the local market is related to the high supply of currency, which has come from both tourism and informal sources, which are always present, especially in the construction sector.

The fall of the euro has significantly hit exporters, who have seen a drop in income, and even many businesses in the fashion industry have declared that they are on the verge of bankruptcy.

Another sector hit is tourism, with hotels forced to raise prices to cushion the fall of the Euro, which in turn led to a contraction in demand and bookings.

Individuals who are paid in foreign currency are another loser, as are families who receive income from immigrants.

The biggest winners are the importers, who are buying more cheaply, and the government, whose external debt costs are reduced. Individuals who have loans in euros are also relieved.

Even those who want to take vacations abroad can buy more currency with the same amount of lek./ Monitor magazine