BoA move revives euro against ALL as it gains 1 point

As expected, the intervention of the Bank of Albania in the domestic foreign exchange market has led to a sharp devaluation of the ALL against the euro since Thursday.

According to the official exchange rate, the European currency was exchanged with ALL 125.25, up 0.83 points compared to Wednesday.

The Central Bank’s Supervisory Council decided yesterday to lower the key interest rate and launch foreign currency operations.

At a meeting with the media, without the presence of cameras, the heads of Monetary Policy and Monetary Operations department at the Bank of Albania said that this operation will be temporary, and it aims to curb the further strengthening of the Albanian Lek.

Experts stressed again that this operation is only a function of the inflation target and the central bank has no aim in itself to interfere with the free current exchange rate.

The Bank of Albania’s heads refused to provide details on the amount of currency to be purchased and the duration of these operations.

They did not define a specific objective to be achieved in the exchange rate euro – ALL, but said that further strengthening of appreciation against the euro would not be healthy for the economy.

The euro’s depreciation exceeded the Bank of Albania’s forecasts when it declined earlier this week to the ALL 124 limit.

The Bank considers that such a hardening of appreciation does not reflect fundamental factors that determine the level of the exchange rate, but is mainly a result of the generated expectations of market players to the trend of recent months.

SCAN

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