15 minutes agoEuro returns above 105 for the first time since late July
Periskopi(3 years ago)
(3 years ago)The euro is gaining ground on the exchange course with Lek this week and has returned above the 105-dollar level for the first time since the end of July. According to the Bank of Albania's official exchange rate, the European currency was exchanged on Wednesday (U.S.) at $110.09, up by 1.26. [...]
According to the Bank of Albania's official exchange rate, the European currency was changed on Wednesday ($105.09, up $1.26 since late last week.
Euro strengthening has also pushed up the course of other currency. The American dollar was returned today at 96.2 leks, rising by $1.65 by the end of last week.
The British government returned with $162.72, up $27 since the end of last week. It is the highest value since July 28th.
Following messages provided by the Bank of Albania earlier this month, the Euros course seemed slightly more stable, standing for several days at the 103-104m levels.
The easy recovery of the euro in the exchange course can be partly explained with the smoothing of the seasonal element. Historical data shows that during the summer course season the Euros reach the lowest level at the beginning of August, while there is a slight tendency of increased correction.
Late this week, the Bank of Albania will hold the second currency purchase auction for the month of August. The projected purchase in the first round is 5m to 9m euros, but considering previous auctions is expected, including the second round of auction, to reach up to 17-18m euros.
Generally, the effect of auctions by the Bank of Albania is the most sensitive in previous days, when subjects participating in auctions can be placed in purchasing positions.
The Bank of Albania decided this month to increase Euros' planned purchases on the domestic currency market at a interval of between 220m euros and 300m euros, from the previous 160m -220m-euro interval. This decision came as a form to attract the large amount of currency from the market and to curb the further strengthening of Lek.
Another factor that may begin to affect the ongoing currency market is the import of electricity. In the first part of the year, abundant energy production in the country did not create a need to import electricity.
But in the past two months, the fall of production has prompted the Albanian Electronic Corporation to resume energy imports. Considering that imports affect considerable value, this factor may have contributed to increased currency demand.
