Elections and tourism are highlighting the euro's decline. The value of the European currency against the Albanian lek has fallen to its lowest level in 17 years.
One euro is being exchanged at the exchange rate published by the Bank of Albania for less than 98 lekë. Compared to April, the European currency has lost 1.26 points.
"The biggest pressure, if we can say so...is being exerted by tourism with the increase in euros. The other factor is related to the informal euro that circulates in large quantities in Albania, especially when there are elections," said economic expert Adrian Civici.
Going back in time, in May 2015, one euro was exchanged for an average of 140.61 lek, depreciating to 138.52 lek in 2016. The European currency maintained a stable equilibrium until 2022, only to then succumb to the "superlek".
"The main reason is the massiveness of the euro in the market. Even the de-eurization policy has not had any effect in this regard, as the amount of euro in the market is very high," Civici added.
The above-target purchases, along with the Eurobond, have expanded Albania's foreign exchange reserves to their highest level ever. At the end of March, they reached almost 7 billion euros from less than 6.3 billion in February.
Compared to March of the previous year, foreign exchange reserves have expanded by 1.3 billion euros or 23 percent.
"Even the increase in foreign exchange reserves has a limit. We can say that we have reached it. Therefore, under these conditions, a further depreciation of the euro can be expected."
Foreign exchange market agents predict that the euro will continue to depreciate in the future as a result of the elections and the approaching massive summer tourist season.
Due to the exchange rate methodology, other major currencies in the country, such as the dollar or pound, will also have the same performance. (A2 Televizion)
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