The euro exchange has greatly improved this week.

According to official rates by the Bank of Albania, a euro exchanges today at 111,89 Albanian lek, an increase of 0,58 points compared to Monday’s rates.

The European currency fell to a historic minimum last week, exchanging at 110,63 lek.

The euro’s quick recovery is following a similar trajectory as that of last year. According to experts, one of the reasons behind it could be the expectations that the euro would improve after the Albanian local elections. This led to a higher request to buy euro and has pushed the currency to its highest level in almost a month.

The exchange rate is correcting the historical devaluation of the euro in the first half of May, a period that corresponded to the last weeks of the local elections campaign. However, long-term tendencies favor the Albanian lek, which scored an increase of 7,2% against the euro compared to the same period a year ago.

The improvement of the euro should partially minimize exporting businesses’ concerns, which have been significantly hit by the strengthening of the local currency in the foreign exchange rate. Euro is the dominant currency in the country’s commercial exchanges and its movements directly affect the value of imports and exports expressed in local currency.

The lek appears to be falling with most other foreign currencies this week. Even the American dollar has experienced an increase and exchanges now at 102,71 lek, the highest level in a month.

However, the strengthening of other currencies is not related to internal factors of the Albanian foreign exchange market, but the ratios of these currencies in the exchange rate with the euro. In the last few days, the euro has lost ground in international currency markets and this is leading to the strengthening of the main currencies against the lek.