Crisis affects savings, Albanians save less money and more euros

According to statistics from the Bank of Albania, the total of deposits at the end of July amounted to $1.24 trillion, dropping by 0.04 percent compared to the previous month ($568 million). The decline comes after significant growth the previous month (+11.1 billion dollars).

Out of the first seven months of this year, in three of them savings have tended to decline. Compared to December 2021, deposits have expanded by 1.9 percent. A year ago for the respective period of growth was nearly 4%.

Money deposits contracted by 0.3% in proportion to the previous month (1.4 billion le le le le le le le le le. In relation to the beginning of the year, savings in local currency have been reduced by 1.8%. A year ago the change was +1.2%.

The decline in money savings is an indirect indication that the situation created in the economy by high prices is tightening family budgets, which are being forced to spend more to live.

With wages and income left almost in the country, this is creating less opportunities to save. In July, inflation reached 7.5%, marking the highest levels of the last 20 years.

By contrast, currency deposits continue to have a positive tendency, increasing by 0.1% in July. In relation to the end of 2021, foreign currency savings, which are mainly in euros, have expanded by 5%.

The increase is higher, as the report by the Bank of Albania is made in money, while the euro has marked a perceived decline this year, towards the local currency.

At the end of July, deposits in cash accounted for 43.7% of the total, down from 46% in the same period a year ago, showing the dominance of foreign currency savings in the domestic economy. /Monitor. al