110 ALL, the new balance? Agents: The old euro exchange rate is no longer available

2023-08-28 17:28:33Biznes SHKRUAR NGA REDAKSIA VOX
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The slight strengthening of the euro at the end of August is usual for the period, while the 110 lek exchange rate may be the new balance in the foreign exchange market.

These are the assessments of the Chairman of the Association of Foreign Exchange Agencies, Dritan Vakaj, who also predicts further instabilities in the foreign exchange market.

"Autumn is relatively expected to have some strengthening of the euro. This is due to the increase in consumption and the change in internal dynamics in demand and supply", he told A2CNN.

Data from the Bank of Albania show that the European currency in August of last year was exchanged on average at 116.97 lek from 106.14 lek this month, losing 10.83 points month losing 10.83 points.

For foreign exchange agents, the exchange rate during 2022 is a "past, almost impossible to repeat".

"It would be a market anomaly as it would not be able to be explained and would simultaneously hit the country's economy hard."

The Bank of Albania has entered the foreign exchange market twice this month, buying over 20 million euros in order to restore balance in the exchange rate, but for Vakajn, these policies do not have long-term effects.

"The interventions of the Bank of Albania have very low and medium-term effects. The exchange rate is determined by confidence in the markets.”

Along with the euro, due to the methodology of calculating the exchange rate, other main currencies in the country, such as the dollar or the pound, have increased slightly in the last week, being exchanged for 100 and 125 lek on average.