DREAM / The Prime Minister resigns and wakes up under the Parisian bridge!

 Kliko këtu për të tjera
Voxpress:

The euro rises slightly, but remains close to historical lows against the lek

2023-04-28 17:30:24Biznes SHKRUAR NGA REDAKSIA VOX
The euro rises slightly, but remains close to historical lows against the lek
Euro rises easily

The fall of the euro in the exchange rate with the lek was curbed in the second half of the week.

According to the official exchange rate of the Bank of Albania, on Friday the euro was exchanged at the value of 112.12 ALL.

During the last two days, the euro has recorded a slight increase from the historical minimum level of 110.98 ALL that it reached on Wednesday. According to market agents, the curbing of the fall of the euro may have come from a slight increase in demand, perhaps also stimulated by the rather favorable exchange rate of the European currency.

Although the fall of the euro has for the moment stopped near the limit of 111 lek, the position of the European currency remains weak and the prospects for further growth of the exchange rate seem dim, in the conditions where the coming months are expected to be accompanied by a significant increase in foreign exchange flows from tourism.

According to experts, in the short term the further fall of the euro can be restrained only in case of intervention by the Bank of Albania, or, eventually, by the government, through a borrowing strategy that may try to temporarily attract a part of the large amount of foreign currency that circulates in the Albanian economy.

Albania has a free exchange rate regime and under normal conditions the Bank of Albania does not intervene in the foreign exchange market. The intervention of the central bank can only be justified by temporary situations of instability or panic, which create one-sided expectations and condition the behavior of market actors.

Several such interventions have taken place in recent years and have been effective in stabilizing the course within a few days.

However, in the current situation, the Bank of Albania has hinted that the exchange rate levels reflect the fundamental factors of demand and supply in the market, so such a situation does not justify the intervention of the central bank. The interventions of the Bank of Albania in the foreign exchange market are usually done through direct purchases, injecting or withdrawing currency, depending on the circumstances.

Although in the current circumstances the fall of the euro is a product of market forces and an intervention in theory does not seem justified, the significant devaluation of the euro over the last two years is becoming a problem for the exporting sectors of the Albanian economy.

These sectors have historically not been noted for high levels of competitiveness, while the devaluation of the euro is threatening this competitiveness even more.

A 7.5% devaluation of the euro exchange rate on an annual basis means a decrease in the same amount of income, expressed in local currency. This decrease can shrink the profit margins of businesses, in conditions where the reflection of the exchange rate in the selling prices of products is not always possible.

For this reason, 7 exporting, manufacturing and tourism sector associations addressed this week with a letter to the Governor of the Bank of Albania Gent Sejko and the Minister of Finance and Economy Delina Ibrahimaj, where they state that this devaluation of the euro has caused serious damage. manufacturing industry, exporting and domestic tourism, leading many subjects to bankruptcy./ Monitor


Në përputhje me standarded JTI

Video

SHIKO KANALIN NE YOUTUBE
×