TIRANA, August 17 – The ALL continued to strengthen against the euro in the second quarter, while foreign direct investment rose 12%, increasing foreign currency supply in the domestic market, according to the Bank of Albania.
The average ALL-euro exchange rate fell to 94.8 ALL in June from 96 ALL in March. The ALL strengthened by an average 0.4% per month.
Year-on-year appreciation accelerated to 3.2% in the second quarter from 2.6% in the previous quarter. The trend strengthened further in July. During the first 3 weeks of the month, the average euro-ALL rate fell to 93.8 ALL, marking a 4% annual appreciation of the ALL.
Meanwhile, the Bank of Albania linked the development partly to higher foreign currency inflows. Foreign direct investment increased 12%, expanding foreign currency supply and contributing to earlier appreciation pressures.
The central bank said its analysis confirmed a close link between foreign exchange trading volumes and flows of goods and services with other countries.
According to the Bank of Albania, the stronger ALL and lower euro-ALL rate reflect structural changes in Albania’s economy. Higher foreign direct investment, tourism revenues and other foreign currency inflows have increased supply in the domestic market and created pressure for further appreciation of the local currency.
/a.p./
The post Bank of Albania: ALL strengthens 3.2% in second quarter as foreign direct investment rises 12% appeared first on RTSH English.
