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The exchange rate of the euro does not stop the fall, it drops below the value of 99.5 lek

Politiko 2024-09-13 15:42:34
The exchange rate of the euro does not stop the fall, it drops below the value

The euro has suffered a further decline in the exchange rate with the lek and has closed the week at the lowest historical level. According to the official exchange rate of the Bank of Albania, on Friday the euro was exchanged for 99.47 ALL.

The European currency remained below the level of 100 lek throughout the month of September, while following a slow downward trend throughout the month.

The euro's annual decline is also accelerating and the European currency is trading down 6.4% today compared to the same day last year.

The high and stable supply of the European currency in the foreign exchange market is causing the euro to fall even in a period of the year when historical trends have been characterized by a recovery of the euro exchange rate, after the summer's seasonal decline.

However, in recent years it is clear that the fall of the euro is not a seasonal phenomenon limited to the summer vacation months. This can be explained by the time distribution of tourism almost throughout the year, large foreign currency inflows aimed at real estate investments and foreign exchange flows from informal sources.

Even the Bank of Albania seems to have already given up trying to keep the exchange rate under control through direct interventions, accepting the drop below the symbolic limit of 100 lek.

The decline of the euro has been followed by most other currencies. The American dollar has again fallen below the limit of 90 lek and was exchanged on Friday at 89.64 lek. The British pound also lost ground and was exchanged at 117.85 ALL.

Balance of payments data do not provide a real-time picture of foreign exchange flows. During the second quarter, the current account deficit showed a slight improvement, but the balance of the first 6 months of the year remains in a significant deterioration compared to last year, with a current account deficit at the highest level since the year 2020.

However, where the deficit continues to be covered by the high values ​​of foreign direct investments, which for the 6th month reached a new record value of 749 million euros and exceeded the value of the current account deficit by about 30%.

Another indicator that proves the high foreign exchange supply in the market is the increase in exchanges in the second quarter of the year by 30% more compared to the previous year./Monitor

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