The euro was traded today in Albania below the value of 121 lek getting closer and closer to its lowest value of all time.
Yesterday 5 August 2019, in fact, the European currency was traded to 120.75 lek according to the official data of the Central Bank of Albania, even devaluing itself of 0.59 lek compared to yesterday.
The depreciation of the euro at this time of the year is closely linked to the high flow of incoming money due to the large number of foreign tourists and the return home for the holidays of Albanian emigrants.
With the decrease recorded today, the euro has approached its lowest value point of all time in relation to the lek dated the first half of 2008, when 1 euro was traded with 120.4 lek. After a gradual growth trend, in fact, the euro in the 2016 started its downward trend devaluing even 17 lek compared to the current value.
Will another Bank of Albania intervention be needed?
For the experts, as mentioned, the main cause is the influx of euros brought into the country by foreigners who come to Albania both for tourism, but also for health tourism and for work reasons. In the first quarter of this year the expenses in euros of foreigners in Albania amounted to approximately 348 million, a record value since the fall of the communist regime and about 5% higher than the same period of the 2018.
Already last year, during the summer season, the intervention of the Bank of Albania had been necessary to block the downward trend of the euro against the lek. Specifically, the Bank had converted some euro loans into national currency, a rare event considering that Albania from the 1992 had maintained a regime of freely floating currencies unlike other Balkan countries that have always opted for rates exchange rates fixed with foreign currencies - specifically for the euro - such as Bosnia and Bulgaria.