The euro touches the lowest level in a month against the Lek

2023-09-21 17:13:14Biznes SHKRUAR NGA REDAKSIA VOX
Exchange rate today

Although September is coming to a close, the euro continues to depreciate against the lek.

According to the official exchange rate of the Bank of Albania, the European currency was exchanged on Thursday at 106.23 ALL, down 0.7 ALL since the end of last week.

The Euro-Lek exchange rate has fallen to its lowest level since August 22.

Most other currencies are also following the fall of the Euro. The British pound dropped to 122.54 ALL, the lowest level since mid-August. The Swiss franc dropped to 110.06 ALL, also at the lowest level in a month.

The American dollar remains below the level of 100 lek, but nevertheless on Thursday it recorded a slight increase and was exchanged for 99.67 lek.

The month of September is also confirming the strong position of the Lek in the foreign exchange rate. Although the peak tourist season has passed, the European currency has not achieved a sustained recovery. Between August 23 and 25, the Euro exchange rate gained almost five points within three days, reaching the level of 110.67 ALL.

But, as has happened several other times this year, the strengthening of the Euro has turned out to be very short-term. Most likely, the increase was due to a concentrated demand from one or a few large entities.

Due to the small size of the foreign exchange market, but also perhaps to a kind of uncertainty caused by the exchange rate volatility during this year, the large and unexpected demands bring a strong and beyond normal increase in the Euro exchange rate.

But, at the moment when these requirements are fulfilled, the exchange rate of the Euro gradually falls close to the previous levels. The same thing happened this time, with the Euro already back to the levels of a month ago.

Experts believe that the effect of tourism on the exchange rate is now more extended in time. If until a few years ago these effects were mainly spread during the months of July and August, the extension of the season has made the seasonal impact on the course to be tangible even in the months of June and September. The record number of foreign tourists this year has caused the foreign exchange supply to remain high, while the demand does not show any significant movement. This can also be explained by the fact that many entities have purchased the necessary foreign exchange reserves already in the summer months, with the aim of benefiting from the low exchange rate.