For the first time in 20 years, the dollar is equal to the euro. Many people are wondering whether it is a good thing or not and what impact it will have on their daily lives, including the immediate effect on the Lek, Albanian local currency.  
There are 4 main reasons why the Dollar has strengthened, becoming equal in value with the Euro:
CHALLENGES OF THE GLOBAL ECONOMY. In times of global crises, the USD strengthens because it is considered the most important global currency and seen as the safest and most stable by investors.
EVERYTHING IS RELATIVE. Compared to other currencies, especially in times of crises, the Dollar is better equipped to withstand the storm and stands out as a more stable currency.
THE ECONOMIC CONSEQUENCES FROM THE WAR IN UKRAINE ARE HARDER FOR EUROPE. The impact of the disruption from the supply chain of basic products and Energy prices from the war in Ukraine has hit Europe the highest and is expected to continue.
CENTRAL BANKS ACTIONS ON INFLATION. Inflation in the US is as high as in Europe, but the actions of the Federal Reserve in America are more aggressive than anywhere else - in raising interest rates to reduce inflation. The actions of the European Central Bank (ECB) have been more careful as to not destabilize economic growth. Higher banking interest rates in America have attracted more investors, increasing the value of the Dollar.
Since the Albanian economy is much more connected to the Europe than the US, the Lek is aligned closer to Euro trends than to the Dollar. The Lek has lost value compared to the Dollar, which is expected but not to the Euro.
Due to a long-standing cooperation with international institutions such as the IMF, the Bank of Albania remains one of the most independent institutions in Albania. As such, the Lek has been through years one of the most stable currencies in the region.  
But the global economic challenges will continue, and Albania is not isolated from those challenges. Institutional independence, useful technical policies, and strong cooperation with international partners, so that the country's political risk is carefully managed, will be some of the key criteria for the continued stability of Lek.