Euro drops after three-week rally

Tirana Times
By Tirana Times March 31, 2020 16:22

Euro drops after three-week rally

TIRANA, March 31 - The euro dropped 1.6 percent against the lek on Tuesday, after rallying for almost three consecutive weeks. According to the Bank of Albania's official exchange rate on Tuesday, one euro was exchanged for 130.66 lek, 0.4 lek less than the day before.

This marks the first time the euro has dropped since March 12, when the government imposed strict measures to contain the spread of the novel coronavirus.

Experts argued that the appreciation of the euro is artificial as it is linked to the COVID-19 crisis and the measures enforced to contain its spread. On Monday, measures were tightened further by the government, allowing only one person per household to leave the house. In turn this has further reduced cash flow with spending being reduced to a minimum. 

Moreover, the suspension of all flights has prevented banks from bringing foreign currency into the country and thus lowering the supply of euros, at a time when demand for the currency has been high in the food and pharmaceutical markets.

However, experts confirmed that over the weekend the currency was transported by aircraft to Albania, supplying banks with foreign currency and thus halting the rise of the euro as seen on Tuesday.

Moreover, the drop is also linked to the euro's its depreciation in the stock market, amid COVID-19 fears. Based on the current situation, experts claim that they cannot make accurate predictions on how the euro will perform in the upcoming days, as it will depend on several factors.

Tirana Times
By Tirana Times March 31, 2020 16:22