TIRANA, August 7 – The Bank of Albania (BoA) made the decision to buy up to 300 million Euros from the 220 million it had predicted for 2023.
In an interview for TV Klan on Monday, the director of monetary policies at the Bank of Albania, Erald Themeli, also lists the factors that led to this intervention, which according to him is expected to help partially ease the supply and strengthen pressures on the exchange rate.
According to him, the analyzes of the Bank of Albania continue to show that the reasons for the strengthening of the lek exchange rate in the domestic foreign exchange market are related to the rapid improvement of the foreign balance of the Albanian economy. “We have had a more than sufficient level of foreign currency inflows either from exports or from foreign direct investments to dictate this strengthening trend of the exchange rate in the domestic currency market.”
In the judgment of the Central Bank, the strengthening of the local currency as a whole has had positive effects on the Albanian economy. “Our analysis shows that if we had a weaker exchange rate, we would have twice the level of inflation than we currently have, and twice the interest rate.”
However, the Bank of Albania is following the developments in the foreign exchange market more closely and if the need arises, it can intervene again, but according to the BoA official, at the moment it is judged that the foreign exchange market is functioning normally.
According to the official exchange rate of the Bank of Albania, 1 Euro was exchanged on average for 103.62 Lek on Monday,, a decrease of 0.42 points compared to the previous day. /argumentum.al
