The sharp decline of the euro and other currencies in the exchange rate should not prompt the Central Bank or the Government to take countermeasures. With this approach, the International Monetary Fund calls for Albania to maintain a free exchange rate.
In Washington, IMF representatives urged the Governor and the Minister of Finance to allow economic developments to unfold and to let the market itself determine the course of the exchange rate.
According to them, a free exchange rate has helped preserve macroeconomic stability and price stability.
“The exchange rate should be allowed to adjust and remain flexible in response to market developments, while central bank interventions should remain a tool aimed at fulfilling its primary mandate—price stability—and at mitigating fluctuations arising from speculative factors.”
The Governor noted that the macroeconomic policies undertaken in the country have been prudent and well-coordinated, while fiscal policy has continued to be consolidated, reducing public debt.
He added that investments and private consumption remain the main drivers of growth, with the services sector and tourism, in particular, contributing positively.