Abnormal! The euro starts the week with a record drop against the Lek

2023-07-31 14:35:20Biznes SHKRUAR NGA REDAKSIA VOX
The euro starts the week with a record drop against the Lek

The exchange rate between the Euro and the Lek has started this week in an abnormal decline, after last week's increase.

According to the official exchange rate of the Bank of Albania, the European currency was exchanged today at 102.87 ALL, down by almost three ALL from the level where it closed last week. This is also considered as the strongest devaluation of the euro against the lek in a single day, which has ever been recorded.

The fall in the Euro exchange rate has been reflected in similar proportions in the exchange rate of other main currencies. The American dollar was exchanged at 93.22 ALL, down 3.33 ALL compared to the end of last week. The British pound was exchanged at 119.8 ALL, down 3.92 ALL from the end of last week. The Swiss franc was exchanged at 107.19 ALL, down 3.63 ALL compared to Friday.

The strengthening of the local currency is negatively affecting the exporting sectors of the economy, which have income in foreign currency and expenses in Lek. The strongest effects can be felt in the fashion sector, where the opportunities to correct margins as a result of the strengthening of the Lek are limited. The strengthening of the Lek is also negatively affecting other sectors, including tourism, making them less competitive in selling goods and services to foreign buyers.

Meanwhile, the deputy of the Democratic Party, Jorida Tabaku, said yesterday that due to the devaluation of the euro, Albanian businesses have spent 31 million euros more this year.

Tabaku emphasized that there were more costs for businesses, while predicting wage cuts and why not job losses.

"Meanwhile, so far the Albanian government has collected 373 million euros more from taxes as a result of the devaluation of the euro currency, that is, less income in the pockets of citizens", writes Tabaku on social networks.

According to the DP deputy, "this devaluation of the euro serves corruption and a captured state that circulates informal millions while enriching a minority and keeping a majority in poverty. Hitting the middle class and deepening inequality."