The exchange rate has been subject to strong fluctuations in recent days, caused by the general geopolitical situation and the trade war with the United States of America. But as the dollar touched new lows, the concern in Albania is for the euro, the second most used currency in the country after the lek. What is its fate expected to be?
The euro is currently trading at 98.9 lekë in our foreign exchange market, strengthening slightly compared to the end of last year. But it remains below the 100 lekë quota, also considered the psychological limit or firing line for this currency.
What are the factors that are expected to determine the performance of the euro this year and consequently the loss or gain of all those who use this currency on a daily basis?
The general parliamentary elections on May 11 are expected to have a significant impact, as they will be accompanied by increased spending and consequently the money supply in lek, which will put pressure on the euro to fall. On the other hand, Trump's trade war with tariffs on partner countries will have an opposite effect, which is expected to depreciate the dollar and consequently strengthen the euro.
Due to its massive use in our economy, the decline or strengthening of the euro has its losers and winners.
Thus, from a weak euro, everyone who has income in this currency loses, including families who receive money from emigrant relatives. Depositors in this currency and exporters who have their activity in euros and expenses in lek lose. Meanwhile, those who have loans in euros benefit, as they will pay less for monthly installments; importers who buy goods and products cheaper, as well as the government that will pay less for its external debt. (A2 Televizion)
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