TIRANA, Aug. 13 (Xinhua) -- The euro's value against the Albanian lek fell to 99.86 on the local currency exchange market on Tuesday, marking the second consecutive day it has stayed below the 100 threshold, according to the Bank of Albania. On Monday, the exchange rate was 99.95.
Local media reported that the primary driver behind the lek's appreciation against the euro is a significant inflow of foreign exchange, largely fueled by a booming tourism industry. Additionally, increased foreign investment, particularly in the real estate sector, has contributed to the rise in the lek's value.
Since May, the Bank of Albania has intervened in the foreign exchange market to prevent the euro's value from falling below the 100 lek level, through direct purchases and by coordinating with commercial banks. However, these measures appear insufficient to counteract the prevailing trends. The euro typically faces downward pressure in late July and early August, primarily due to the influx of tourists.
The weakening euro may help ease inflationary pressures, as it could lead to lower import prices. In July, Albania's consumer price index (CPI) decreased by 0.2 percent month-on-month, while the annual CPI increase was 2.1 percent, the lowest rate since August 2021. ■
