Euro hits new record low at ALL 125.92

Euro hits a new record low Thursday, falling below the ALL 126 quota, while data show that the euro’s flows into the banking system are on the rise this year.

According to the official exchange rate, the euro was exchanged at 125.92 Lek, a value which was last reported at the beginning of February 2009.

Experts say that euro offer in the foreign exchange market is high and exchanges also include large value transactions, such as the conversion of special shareholders’ equity to banks.

Another factor may be the psychological effect.

The loss of the euro may push many individuals to turn the savings into Lek, further increasing the European bid and pushing it further into depreciation.

Since we are on the verge of summer season and tourist activity seems to increase, chances are that the devaluation of the euro will continue further.

Statistics show that the euro’s performance in the market has also increased during the first months of the year.

According to data from the Bank of Albania, new euro deposits that entered into the system for the first four months of the year were 2.8 billion euros, 5% more compared to the same period of the previous year.

This amount certainly does not refer to net flows, but only inflows.

But, however, figures show that European currency flows remains high.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.