Strong fluctuations between the rate of exchange between the national currency, the lekë, and the Euro last year, reaching as low as 124 lekë to the dollar, forced the Bank of Albania to attempt to intervene in the currency market.
During 2018, the Bank of Albania purchased about 180 million Euros as a method of stabilizing the exchange rate.
The Bank of Albania data shows that the intervention started in April, culminating in the July-August-September quarter, when 114.55 million Euros were purchased.
Money market interventions by the central institution are also commonplace for the creation of foreign exchange reserves.
If we include this element, the Bank of Albania has bought over 300 million Euros during 2018.
This includes a loan by the European Bank for Reconstruction and Development (EBRD) to the amount of 116.22 million Euro in the framework of the exchange agreement.
Foreign exchange intervention by the Central Bank institution was interrupted over the final three months of 2018, even though the European currency again marked a significant weakening.
Currently, 1 euro is being exchanged for 125 lekë, but the Bank of Albania has called this a new balance for the Albanian economy.
Playing a similar tune, experts suggest that this rate of exchange between lekë and Euro is the new reality for the Albanian economy.