TIRANA, December 19
The Eurozone currency has been losing value and it can be considered the longest losing streak on record as on Friday it hit a new low exchange rate, Euro to Lek: €1= Lek135.05
Even though conditions improved in international stock markets, after Euro fell to its lowest level in 13 years, the situation in the Albanian market remained the same.
Experts from the market say that Euro’s fall during last week was related to seasonal effects such as the increased demand for Albanian currency by businesses that exchange Euro for paying taxes.
Moreover, the Euro situation is expected to be weak even during this week because of work insurance, which are paid on the 20th of the month. On the other hand, migrant remittances will increase as the end of year festivities are approaching. Experts say that this situation might continue until December 26th as Euro always strengthens in January.
But even though these are the factors that often have a major impact on currency rates, the Euro situation for 2016 was not normal. Experts say that it is impossible to tell the impact of Euro generated by cannabis sales. Although most of that money is said to be invested in the construction sector, some part of it is channelled for daily consumption.
According to experts, the currency generated by the sales of cannabis is considered to be the main factor that causes the decline of Euro to the lowest level in seven years.
Euro strengthening is considered positive for all those who obtain loans in Euro and paid in Lek. On the other hand, it has a negative impact on exporters, who collect less money for the same quantity of sold goods.
News Source: Monitor