"Superlek" continues its revenge, 932 million euros were purchased last year, but the depreciation did not stop

The Bank of Albania has purchased around 932 million euros from the foreign exchange market this year in order to stabilize the European currency and increase its foreign exchange reserves. Although the number of purchases was at a historical record, it has still failed to stabilize the exchange rate, as the European currency continues to depreciate.

In order to stem the decline of the European currency as a result of the “superlek”, the Bank of Albania was forced to withdraw over 932 million euros from the foreign exchange market last year. Around 284 million euros were purchased to expand the foreign exchange reserve, while the rest was used to bring some “calm” to the exchange rate.

However, the "superlek" continued the rematch.

"The goal of the Bank of Albania through interventions in the foreign exchange market is not to stop the increase or decrease of the euro, but to stop its depreciation or appreciation at unnatural rates," said Dritan Vakaj, head of the Albanian Foreign Exchange Association...

"The exchange rate is diabolical and unpredictable"... this is what Governor Gent Sejko said in the summer of 2024 while speaking in Parliament. And this is exactly what happened last year, as the Central Bank was forced to withdraw 3 times more currency than planned.

"The Bank of Albania has relatively limited opportunities to intervene in the foreign exchange market," said Dritan Vakaj, head of the Foreign Exchange Association.

The Bank of Albania plans to withdraw at least 270 million euros from the foreign exchange market this year. Based on the amount of European currency that will be introduced into the country, purchases could increase to 350 million euros.

This is the highest level ever of the Central Bank's plans to intervene in the foreign exchange market. But can the further decline of the euro be stopped?

"We believe that this kind of equilibrium at around 100 euros will last. Of course, we cannot talk about strengthening the euro, but we will remain at these levels," said Dritan Vakaj, head of the Foreign Exchange Association.

According to the Central Bank's calendar, interventions in the foreign exchange market are expected to begin on February 25 and continue on March 13 and 25. Purchases are planned to be accelerated with 9 auctions in June, July and August alone. With the arrival of autumn, the Bank plans to carry out one intervention for each month, to conclude purchases on December 5 and 19, 2025.  (A2 Televizion)