The value of euro drops to its lowest levels of the past decade

The value of euro drops to its lowest levels of the past decade
Where is the European currency going? In Albania, its value has dropped to its lowest level in the past decade. Yesterday, a euro was sold at 125.92 lek. The European currency hadn’t registered such value since the end of 2008, when it was sold at 124-125 lek. During that period, experts related the drastic fall of the European value with the effects of the global financial crisis.

This time, they blame the high supply of the European currency, caused, according to them, by the high level of direct foreign investments in the country and the foreign currency brought by tourists visiting the country. However, it still cannot be said with certainty how much further the euro will drop, because the holiday season is ahead and the number of tourists visiting the country is higher than in any other period of the year.

Let us not forget another important factor which has an impact on the supply of the euro: remittances sent home by migrant workers. This category too is more present in the country in the summer than in any other period of the year, as they come here for holidays or send more money to their relatives. By taking into account these seasonal effects, we expect the euro to register a further depreciation during the summer months. This will continue the trend registered throughout the year, which led to a gradual fall of this currency. According to official figures, in the first five months of the year, euro has fallen by 7.51 lek or 5.6%. Experts say that out of the past 102 days of trading, 72 of them have seen a negative performance of the European currency. These sorts of figures prove the trend that exists.


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