The Central Bank of Albania has conducted three currency auctions in October, aiming to halt the euro’s decline against the lek in the foreign exchange market. While these interventions are relatively modest, they have involved only a few select banks that have quoted the euro at lower rates than others. The exact amount of these operations has not been made public, but the euro has shown signs of strengthening in recent days, currently trading at 98.8 lek.
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| The governor of Bank Gent Sejko |
This is not the first time the Bank of Albania has intervened in the foreign exchange market. In previous months, between April and June, the Bank carried out several auctions, withdrawing a total of 272 million euros to boost its foreign currency reserves. Additionally, since May 2, 2024, the Central Bank has been intervening directly in the currency market, purchasing 137 million euros in line with its monetary policy objectives.
Despite these efforts, the interventions have had a limited impact on the exchange rate, as the euro has remained below 100 lek for several months. Nevertheless, the Governor of the Central Bank has stated that measures have been taken to encourage domestic transactions in lek, aiming to reduce reliance on euros and stimulate payments within the country in the national currency.