This year’s shift in mid-September is not anticipated to signal a “turning point” in the euro’s strengthening. Economists predict that the euro will appreciate somewhat against the Albanian lek until the end of November, indicating that the customary strengthening of the European currency following the summer has already been upset.
According to economic expert Mikel Qafa, “we have reason to believe that we will not have a strong upturn in the strengthening of the euro.” This is because foreign investments have persisted despite the drop in visitor flows.
This week, the euro showed signs of recovery, approaching the level of 107 leks, following a fall in the first ten days of September. Experts believe it is unlikely that the exchange rate will drop back to 120 leks, even though they forecast a modest continuation of the gain during the coming week.
An economics analyst named Mikel Qafa stated, “We believe that this exchange rate level will not be repeated due to a number of factors.”
With the exception of the lek, the euro is appreciating vs the national currencies of other nations following the European Central Bank’s second increase in the base interest rate to a record-high of 4%.
“It’s not translating because we can’t have normal balances due to informal factors,” Qafa stated.
Agents in the foreign exchange market anticipate a minor rise of the euro next weekend, on September 22nd. This is due to the Bank of Albania’s intention to remove more than 10 million euros from the currency market.”