Since April, the level of the euro in the exchange rate is moving close to an all-time low, as it is being exchanged at approximately 100 ALL.

According to foreign exchange market experts, the exchange rate continues to be under the effect of the seasonal factor, with a large inflow of foreign currency. The data show that the effect of the summer season on the exchange rate reaches its peak between the end of July and the beginning of August.

The arrival of more tourists in the country means more currency in the local market, a trend compounded recently by the fact that the euro has lost ground in the international market.

The euro is almost 13 points lower if we compare it with the same period a year ago.
Under these conditions, the Bank of Albania is directly buying the European currency in the market to prevent it from dropping below the cap of 100 lek.
Only in the January-March period, the Bank of Albania has withdrawn 32.60 million euros from the market with the aim of increasing the foreign exchange reserve, but at the same time as a measure to prevent further depreciation of the European currency.
The Bank of Albania announces that it can intervene to maintain a certain rate of the euro only when the appreciation of the euro creates a negative effect on imports by importing higher inflation. When this balance is disrupted, the Bank intervenes. BoA also intervenes in the market for foreign exchange reserves.
In these three months, the Central Bank has held three auctions, while in the summer months it is predicted that the intervention will increase. During this year, the Bank of Albania has planned to withdraw from the market about 330 million euros.
/sm/