Euro in free fall, reaches the lowest levels in relation to the lek

The exchange rate of the euro is falling in free fall, reaching below the limit of 115 lek. The fluctuations in this early March are at the level of the end of the year holidays, and the dollar and the British pound have the same trend.

The European currency is in free fall, being exchanged this Monday at 114.86 ALL, with the rate of the Bank of Albania. The decline in these levels was also seen at the end of 2022, in the holiday season. Foreign exchange agents say that during the last few weeks, purchases of euros have been at low levels. On the other hand, they state that the flows of European currency remain relatively high, from individuals.

The country's trade balance may also have had an impact in favor of the devaluation of the euro and the strengthening of the lek. According to INSTAT, for the month of January the trade deficit decreased by 70% compared to December.

Even tourism is becoming a factor with an increasingly important influence on the balance of payments and, consequently, on the foreign exchange rate.

In the same trend are the dollar and the British pound, which are walking below 108 and 129 lek.

The rapid devaluation of foreign currency, especially the Euro, hits exporting businesses and those entities that receive income in foreign currency and spend in Lek.