TIRANA, May 21 – After a recovery immediately after the May 15 elections, the Euro has started to fall again.
The European currency is currently exchanged at 111.67 Lek, with a decrease of 1.76 Lek, compared to this month’s peak reached on May 17, when it was exchanged at 113.43 Lek, according to the official exchange rate of the Bank of Albania.
Experts explain the fluctuations of the Euro in the foreign exchange market with informal money in circulation as well as the effect of local elections.
“Before the elections, about 530 million euros were spent on the campaign, which were public investments, so there was a lot of liquidity. In the first days after the elections, the suspension of public works probably caused this fluctuation. Part of the money that was in circulation was related to the candidates and as the elections have ended there is no more demand in the market,” said Klodian Muca, an economic expert.
As the tourist season is approaching forecasts show that the euro will continue to depreciate against the Lek.
“Most likely, the Euro will continue to fall, it may go up to 102 Lek, maybe it will continue to grow in September. We have to take into consideration the fact that it is not going to be exchanged at 140 lek any more, maybe in the next 5 years,” said the expert.
The Bank of Albania has explained the strengthening of the lek against the euro with the structural improvement of the Albanian economy.
Meanwhile, fluctuations in the foreign exchange market have also affected other currencies, which are falling. The dollar was exchanged at 103.42 lek, while the pound was at 128.54 lek on Sunday. /argumentum.al
