Euro touches the « End », the European currency comes down to the new historical minimum

The euro exchange rate with the lek again fell on Friday and touched a new historical minimum.

According to the official exchange rate of the Bank of Albania, the euro was exchanged with 97.88 ALL, the lowest level ever marked.

Exchange agents think that the decline in the euro course seems to be related to the significant increase in currency flows related to tourism in June.

A significant decline was also marked on the eve of last weekend, when the euro had come down again below the value of 98 leks.

The Bank of Albania intervened in the foreign exchange market at the beginning of last week to buy the euro, making the European currency temporarily recover above the level of 98 ALL.

But with the weekend approaching, the drop -down pressures on the euro seem to be strengthened again, subtracting the European currency to the lowest value ever recorded in the official exchange rate.

The summer season, as expected, is also affecting this year in a further decline in the euro exchange rate with the lek.

Starting from the second half of April, the Euro-lek exchange rate has undergone a downward shift.

Recent years data show that such a decline is more or less common and is related to the increase in incoming foreign currency flows, especially associated with the increase in the number of foreign visitors.

The pressure on the euro course is further strengthened with the beginning of June, when the summer season becomes more intense.

On the other hand, even the tight fiscal policy, with large surplus, in recent years tends to tighten the lek supply over the months, adding pressure to the overcoming of the local currency.

By the end of the 4-month period, the budget was again in the visible surplus, worth ALL 38 billion, though decreasing by 24% compared to the same period a year earlier.

Last year, the Bank of Albania limited the fall of the course to the level of 98 ALL, through large foreign exchange purchases, which began in May and continued for almost the remainder of the year.

The Central Bank bought approximately 933 million euros in the domestic foreign exchange market at 2024, at the highest historical value.

Looking at the exchange rate trends, it is expected that currency purchases from the Bank of Albania will continue to be considerable this year as well.

With the inflation below the 3%target, the Bank of Albania, there is still space to interfere with the exchange rate, staying in line with its main legal objective.