This is a minimum value, which had not been registered for years in our country, at least since 2009, when it registered a drastic depreciation against lek due to the immediate effects of the global economic crisis. This situation caused people who had euros, mainly tourists and migrant workers, to lose more money than in previous years when they came to spend their holidays in Albania. It seems that their departure from the country has helped the European currency to start its recovery against lek. The end of the holiday season is expected to see a rebound of the euro and experts say that as a result of a lower supply of the euro, while tourists and migrant workers have left Albania, its value is bound to grow, because it becomes scarcer in the domestic market. So, the end of the holiday season seems to have had a very good impact in relation to the performance of the European currency, euro.
Strengthening of the euro, who is gaining out of this new situation
The euro, which now seems to have strengthened in the currency market, has changed the “scheme” that has existed so far of those who gained from its fluctuations. While up until a few months ago, when the value of euro was plummeting, all of those who paid their loans in this currency, were more favored.
But now, they need to take more money out of their pocket. Meanwhile, those who have bank deposits in euro, will gain more out of the new currency rate if they withdraw them and convert them into lek. On the other hand, economists explain that a stronger euro against domestic currency, lek, also has positive consequences for the Albanian economy, because it favors exports, the goods that the country takes out of its territory and sells to foreign markets, mainly in euros. Let us not forget that Albania exports around 70% of the total “Made in Albania” goods in Europe, which operates in this currency and this makes the effects more significant. In this point of view, exporters must be happy about the recovery of the euro. But, for importers, there’s an adverse effect, because they need to pay more for the goods that they purchase in other countries, because a stronger euro means more money coming out of their pockets. In this situation, let us not forget all the transactions that are carried out in the European currency in our country, which will now cost more than before. Here we can mention payments to tour operators, payments to private hospitals, etc.
Foreign markets, European currency performing better than the US dollar
While in the Albanian currency market it registered a sharp fall during this year and has just started to rebound, in foreign markets, the European currency, euro, has been gaining ground for quite some time now against its rival currency, the dollar. According to experts, it has continued to strengthen against the US dollar, but also against the British pound. Foreign markets report that the value of euro has increased by 13.3% this year, reaching the highest value in over 2 and half years against the US dollar, namely 1.21. This makes the euro a competitive currency and as a result, this also boosts confidence on the European Union, despite the problems that the latter is going through, following the UK’s decision to leave the EU in a referendum held in June last year.
