TIRANA, March 30 – The depreciation of the lek against the euro continues as the latter jumped by 2.13 percent on Monday. According to the official exchange rate of the Bank of Albania, 1 euro was exchanged with 131.06 lek on March 30, reaching a record high since April 2018.
The dollar has also risen significantly, reaching 118.3 lek from 107 lek on March 9, similarly to the British pound which rose to 146.17 lek from 133 lek on March 18.
Experts argue 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.
Since March 12, when coronavirus restrictions were imposed by the government, the euro has soared by 8.27 lek.
