Euros’ depreciation will have temporary effects, says BoA

Euros’ depreciation will have temporary effects, says BoA
Official statement: “The rapid strengthening of the currency value in the period March-April 2018 seemed to have been impacted by transitional shocks. In general, their effects are temporary and they do not have a permanent effect on the economy”

 A shock, the effects of which will be temporary. This is how the Bank of Albania considered the fluctuations registered in the currency values in the recent months in the country, taking the euro to an all time low of 126-127 lek. This is confirmed in the latest report of the monetary policy published yesterday. The fluctuations registered in the money market in the recent weeks seemed to have occupied an important place on this report. “This performance does not reflect the direct effects and the objectives of our strategy to promote the use of the national currency. As such, it is expected to be a short-term effect”, the report states. Once again, the Bank of Albania dismisses the accusations according to which it was the strategy approved by this institution the one to cause the euro to plummet.

“On the other hand, the rapid strengthening of the currency value in the period March-April 2018 seems to have been impacted by a transitional shock. In general, these shocks have short-term effects and they do not cause big changes in long-term trends. Their effects are temporary and they do not have a permanent effect on the economy”, experts of the Bank of Albania say. Meanwhile, the central bank provides concrete figures about the recent fluctuations in the currency values. “Lek has seen a rapid increase in value in the first quarter of the year, following the increase noticed in the last months of the previous year. Its annual depreciation in March was 5.5% as opposed to 4.1% in the month of December”, the Bank of Albania explains, thus “blaming” the large amounts of euro brought by different agents or sectors of the economy, which in particular periods, have had an effect on the speed of this appreciation”, experts say.

 

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