The Euro Value May Decrease to 90-95 Lek
The euro may continue to depreciate further in the foreign exchange market, potentially crossing the "last red line" and falling below 100 leks. Currently, the euro has strengthened somewhat during the weekend, exchanging for 101.49 leks on Saturday, but the downward trend is obvious. Economic expert Igli Tola predicts that this trend will continue in August and September, with the possibility of reaching an exchange rate of 90 or 95 ALL.
The rapid devaluation of the euro, which has reached historical lows, highlights the shortcomings of the de-euroization policy implemented by the Bank of Albania in 2017. Tola believes that the country's economic structure is to blame, as it allows the circulation of money from informal sources, impacting the currency's value.
Albania stands out in the region, as it is the only country where the local currency, the lek, is strengthening in relation to the euro. A study by the Bank of Austria revealed that confidence in local currencies in the region has declined, except for Albania. This situation is concerning, as it indicates the presence of informal money flows in the economy.
The euro-lek exchange rate has experienced a significant decline, falling by 14 percent compared to the same period last year and by 12 percent since the beginning of this year. The depreciation of the euro against the lek raises economic concerns and highlights the need for further analysis and measures to address the situation.