August kicked off with a drop in the euro in the domestic market, causing the common currency to lose the points it gained at the end of last week.
According to the official exchange rate of the Bank of Albania, one euro was exchanged today at 121.66 lekë, reaching another minimum record of this year and the lowest since December 2019, when the euro dropped to 121.5 lekë.
According to market participants, the fall of the euro is a combination of several factors:
-Increased inflows from tourism and immigrant inflows. This is a seasonal effect, as always in August and December, the increased supply of currency affects the fall of currencies.
-The euro has been weak in international markets, except in recent days, affecting its weak level in the domestic market.
-Market players claim that one reason that is constantly influencing the weakening of the common currency is the high informal currency that enters the country and circulates in the market.
-While many currencies are circulating in the country, the demand for them is very low, making it not withdrawn from the market.
August is generally a month when seasonal effects peak and the lek is expected to be strong against currencies, at least in the first half.
The euro was exchanged on average with 122.8 lekë, for the period January-August 2, from 123.7 lekë in the same period of a year ago and 123.5 lekë in January-August 2019./monitor/
