This is why the lek is destroying the euro

Everything today has an explanation. Even the unstoppable strengthening of the lek. Theoretically, currency strengthening is related to a number of factors 1. Economic Stability: A country with a stable and growing economy attracts foreign investment, which increases the demand for the local currency. Investors have confidence in the stability of the country's financial system. Practically, it is not that we have increasing interest of foreign investors, on the contrary, even those who are complaining about unfriendly environment. Read also: Jail in absence of hospital Foreign exchange January 28, how much foreign currencies are sold and bought today .


Theoretically, high interest rates affect the Turkey Phone Number List strengthening of the currency. When a country offers relatively higher interest rates compared to others, it can attract investors. This increased demand for the local currency strengthens its value. We practically do not have a high interest rate. Theoretically, the local currency strengthens when we have: 3. Trade surplus: A country that consistently exports more goods and services than it imports creates a trade surplus. This generates demand for its currency as foreign buyers need to buy it to buy the country's exports. Increased demand leads to currency appreciation. Practically, we do not have a surplus, but a trade deficit Theoretically, the currency strengthens when we have.



Political stability: Political stability is an important factor for a strong currency. Countries with stable political environments and well-functioning institutions tend to inspire investor confidence, resulting in increased demand for their currency. Theoretically, we have good institutions and laws, practically... Theoretically, the currency strengthens when the country has: 5. Strong fiscal and monetary policies: Sound fiscal policies, such as low levels of government debt and balanced budgets, as well as effective monetary policies that manage inflation and maintain price stability. These factors can contribute to a strong local currency.