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For the first time in 20 years, the euro is worth less than the dollar. This is an important stone in financial history, while the devaluation of the European currency has also echoed in our country, which has the Block as the most important trading partner, while about 50% of the economy uses the European currency.
Even in our country, the euro has reached new levels of the historical minimum, being exchanged for 117 ALL.
Even though the Bank of Albania bought 13 million euros in the market in the last auction, the fall still did not stop. For experts, the reasons are more internal than external.
“The sensitivity to money laundering has increased since the launch of the idea of the fiscal amnesty law, but also with the increase in construction permits, the sector that absorbs this currency the most. The third factor is also the flow from the tourist season”.
But how is this devaluation of the euro expected to affect Albania?
“It mostly helps the state with the public debt, which will be aggressive to pay the interest. On the other hand, those who have savings in euros lose when the currency depreciates, while new borrowers benefit. The latter should diversify their portfolios and invest in other currencies such as the dollar or the British pound.
As for trade, due to informality very little is reflected in the ups and downs in the exchange rate. In other words, our traders have their own exchange rate outside of the official one, and through it they prevent all the problems of the internal market that come from informality, corruption problems, frequent legal changes and the lack of proper market structure..
Expert Gjokutaj also proposes that a new monetary policy is needed to help the economy, because the weakening of the euro reduces Albanian exports and further increases inflation.
“Through the printing of money and its increase in circulation, the government will be able to settle its bills for the persecuted, for VAT refunds, etc. more quickly. This will translate into benefits for citizens as they will have more money in their hands and will be better able to afford the increased costs of living.”.
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