The big euro-lek "break" in 2024 - Who lost the most from the devaluation of the European currency?
In 2024, the exchange rate was accompanied by a deep fall of the euro and a strong appreciation of the lek. In the first months of last year, the exchange rate appeared somewhat stable, but in the second half of the year, the first signs of devaluation of foreign currencies against the local currency began to be seen.
According to official statistics from the Bank of Albania, on August 12, the major euro-lek break was recorded. For the first time, the European currency would fall below the level of 100 lek, thus establishing a new reality in the foreign exchange market.
Although the exchange rate has been accompanied by ups and downs from time to time, since August, 1 euro has continued to be exchanged for less than 100 ALL. Specifically, the lowest level would be recorded on November 14, 2024, where 1 euro was exchanged for 98.11 ALL.
The fall of the euro has brought numerous consequences for the Albanian economy, with export businesses being the most damaged. The latest data from INSTAT show that during the period January-November of last year, exports decreased by 13.9% compared to the previous year, where only the export of textiles and shoes suffered a decrease of 4.8 percentage points . Exports of goods in value during the January-November period fell by about ALL 55.7 billion.
The fashion industry, but not only, has often called for the government, or the Bank of Albania, to take measures to minimize the losses of this sector.
Some businesses have declared bankruptcy, while others, in order to avoid the damage caused by the devaluation of the euro, have made cuts in the number of their employees or significantly reduced production for export. This blow to exporting businesses comes as the latter have their income in Euros, while they have to make payments in Lek.
On the other hand, even families who cover their living expenses from the money brought by their immigrant relatives, or individuals who have savings in European currency, have had significant losses.
In 9 months, immigrants' remittances have set a new record of almost 772 million euros. All this money converted into lek does not have the same weight as before.
Meanwhile, 2025 seems to have started with a slight improvement. In comparison to the last two days of December, when 1 euro was exchanged for 98.14 allek and 98.15 allek, on January 6, the European currency recorded a small increase, where 1 euro was exchanged for 98.23 allek.
Poll
Industry, new obligations for pollution - Monitoring of emissions of greenhouse gases, fines of 2-4 million ALL in case of violations
Operators of heavy industry, aircraft and shipping companies will have to draw up monitoring plans for greenhouse gas emissions and report the data to state......
The tax formula for municipalities changes - New categorization, unconditional transfer according to the 2023 Census
The government anticipates that during the year 2025 it will change the formula for the unconditional financial transfer of the local government as well as......
How much money did KPP collect in 11 months of 2024? - 53.3 million ALL were collected in the state budget from tender fees
Based on the data of the Procurement Bulletin, in the period of 11 months, January-November 2024, the Public Procurement Commission has registered a total of......
US regulator warned banks about cryptos - The start of Trump's term is expected to bring changes in regulations
A regulator asked US banks to stop using cryptocurrencies directly, but stopped short of ordering them to stop providing banking services to crypto......
Euro "removes" Albania from Kosovo?! Imports, the "stick" of trade exchanges in 2024
In recent years, Albania and Kosovo have recognized a strengthening of economic cooperation through signed agreements. Kosovo is turning into a very......
5 out of 6 people aged 100 are women / Income and living alone, the main problems for the elderly
Albania is facing the visible effects of population aging, as a result of a period of rapid demographic transition. During the last decade, a significant......
Italy, 1.5 billion euros for telecommunications security - The Government, close to the agreement with SpaceX to provide these services
Italy is in advanced talks with Elon Musk's SpaceX about a deal that will provide secure telecommunications for the country's government. This will be the......
How much are major currencies being exchanged today?
The American dollar is bought today at 94 Lek and sold at 95.2 Lek according to the local exchange rate. The European currency seems to have recovered......
