Albanian lek at its highest against Euro thanks to upcoming tourist season: Bank of Albania
The Bank of Albania estimates that one of the factors of the euro’s depreciation towards the ALL currency may be the growing income for the tourism sector.
During the presentation of the Monetary Policy report for the first quarter of the year, Central Bank experts stated that a good part of hotels have received bookings for the entire summer season, which could have brought considerable revenue before the start of the tourist season.
So basically, the effects of the summer season this year may have started somewhat earlier and may be more time-consuming.
The Bank of Albania has identified the approaching of the summer season as a factor that is bringing a high euro offer in the foreign exchange market, but without excluding the impact of other sectors. According to the Bank, in recent weeks there has been a high fluctuation in euro exchange rates, which indicates that many economic agents have decided to convert the euro into domestic currency.
According to the official exchange rate of the Bank of Albania, the euro swapped on Thursday with 126.89 lek, with a slight increase from Wednesday, but staying at the lowest levels of the last decade.
The Central Bank estimates that at the end of the first quarter of the year, ALL was valued at 5.5% on an annual basis to the basket of the main trading partners.
While the strengthening of the ALL increases the purchasing power of an import-dependent economy, such as the Albanian one, this trend has, however, caused concern in the export sectors of goods and services.
Also, ALL’s strengthening is curbing foreign inflationary pressures, making it difficult for the Bank of Albania to bring inflation closer to the 3% target.
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