TIRANA, June 14, 2022 – Albania’s currency has strengthened to its highest level since 2007 against the euro, continuing a trend that could take the lek, ALL, to its highest position ever at the height of the tourist season.
According to the market exchange rates, EUR 1 equaled ALL 119.75 late Tuesday.
Experts who follow the exchange rate trends predict a further weakening of the euro during the summer months as tourists with euros flood the Albanian market, an annual occurrence. Some of that effect from the increased number of visitors are already being felt, local media reported.
A stronger ALL is a silver lining in a looming economic crisis, economists say, as it has blunted some of the inflation in Albania from reflecting the massive price increases in the Eurozone, with which Albania does most of its trade.
Even with the help of a stronger currency; however, Albania’s inflation has spiked to levels it hasn’t seen in two decades, with official inflation reaching 6.7 percent in May, according to the country’s official statistics entity, Instat. However, experts believe real inflation numbers could be higher. Inflation in the 19 countries of the eurozone soared to 8.1 percent in May, the latest figures show.
In addition to high inflation, Albania’s economy is facing labor shortages and lowered growth predictions as Europe’s economy suffers from the effects of the pandemic and war.
All of that has some economic experts perplexed over the strength of the local currency, which can’t be explained by economic growth or the influx of euros from tourism and remittances from Albanians working abroad.
