In this case, the chances are that the Euro will again suffer a gradual decline for the following period.
If the strong demand for the Euro in recent days has come as a result of advance purchases by businesses, experts believe that this will affect a lower demand for the European currency until the end of the first quarter. Given the small size of the market, such demand induces a strong shock in the foreign exchange rate. In general, strong movements in one direction in the Albanian foreign exchange market occur when there is a large demand, concentrated in a short period of time. On the other hand, market experts do not rule out that the fall of the Euro is also related to large purchases by certain corporations.
Under these conditions, many businesses may have taken advantage of the free liquidity created to purchase Euro reserves in advance, seeing the historically low exchange rate of the European currency. This has led to a strong increase in the supply of Lek in the foreign exchange market.
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