ALL resists against EUR under 140

12/08/2011 08:30

One euro has been exchanged with less than 140 ALL during the recent
week, showing resistance against the European currency, while the exchange rate with USD fluctuated due to
the losses of the US currency against Euro.

Data from Bank of Albania say that in the recent week, the average rate has moved from 139.5 and 140 ALL per EUR. Euro is currently cheaper than six months ago.

Meanwhile, the historical data of Bank of Albania, according to “Shqip”, state that August has seasonal effects to exchange rates, but these effects have been decreasing in the last years and do not make an absolute rule. The general tendency is that euro has the same rate during July and August, and often even cheaper.

ALL strengthened in August 2003 with 2.2% against Euro, but in the last years, the changes during July have been minimal.

The seasonal summer fluctuations have been always present in the last two decades, but due to the increased incoming foreign currency during summer and December by emigrants, ALL has been stronger in this period. Another important factor for the strengthening of ALL in December is the increased debt that the government uses for closing annual budget accounts, what causes a temporary withdrawal of ALL from the market and consequently becomes stronger.

The data published by Bank of Albania show that seasonal ALL fluctuations have decreased since 2002, mainly because banks tend to buy currency while it is cheap, what has brought a partial elimination of the seasonal effect.

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