Elements influencing the devaluation of the Euro in the Summer of 2021ALTax
If we analyze what influences the devaluation of the Euro in the summer of 2021, it is noticed that the main formal factor affecting this decline seems to be partly due to the increase in energy exports and raw materials for construction (16% and 41% respectively more than 6 months of 2019 and 2020) adversely affecting the income balance for this segment of the economy.
But, most of the main impact this year comes from the trading in high volumes of the Euro by individuals from Kosovo, Serbia, other border countries (including the entry of migrants) for the summer season.
Another influential element, which is permanent for the foreign exchange market in Albania is the informal entry of the Euro in the supplying of activities and supplies of goods and services for the informal economy in construction, entertainment, trade and individual consumption have their still high impact on the Albanian foreign exchange market.
Meanwhile, the Albanian financial market itself remains quite voluntary in terms of coordinating and maintaining a more comprehensive policy in monitoring and preventing the effects of factors related to risk management and addressing them for solutions in the long run.
Another impact comes from the exchange international market, where the Euro this summer (up to date) has had a devaluation against the US dollar according to bank information, where the risk of a pandemic continues to destabilize efforts for economic recovery across Europe, as in many other countries.
As a result, the higher supply of the euro in the market in relation to the Albanian Lek, which in fact represents a higher supply in relation to the need (demand) for the euro dictates as a community of all the influential elements as above in the fall of the Euro.
This devaluation will continue as long as the massive inflows of individuals to Albania for seasonal tourism continue, and in the medium term remains a challenge that the main countermeasure is the fight against informality and evasion in the economic and consumption sectors that benefit from the Euro, as part of money from informal and criminal activities.