Post by tomis42 on Feb 15, 2024 9:20:40 GMT
The drastic devaluation of the euro against the lek, in addition to concerns about the great negative consequences in the economy, has also opened a public debate among experts on what are the causes of the shock in the exchange rate. A number of reasons have been put forward in the market to explain the abnormal devaluation of the European currency, from money flows with illegal sources to speculation by certain groups. But there is another factor, which, although it has received less attention, is becoming a determinant for the sinking of the euro against the lek. This is the behavior of the government.
In the first six months Paraguay Phone Number Listof the year, the state budget closed with a surplus of 46 billion ALL. So, in the January-June period of this year, the government took from the market through taxes, levies or other sources 46 billion ALL more than it returned through spending. This money lies dormant under the government's mattress. And yet, surplus does not tell the whole story. In addition, there is money received through internal borrowing. According to official data, for the first half of the year, the government received another 33.6 billion lek through borrowing in the domestic market. This is the drying up of the market from liquidity on a large scale.
Read also: What is hidden behind the propaganda with the objective "10 thousand euros per capita"? Activists: Bill on 'Protected Areas' violates EU directives To put it briefly, only through the budget balance and internal borrowing, the government has taken 80 billion ALL from the market without giving it back. So the supply of the national currency in the market is 80 billion lek less than it should be under normal conditions. The less lek there is in the market, the more the national currency strengthens against all other currencies. But the shrinking of the lek supply in the market is only one mechanism through which the government is massively influencing the exchange rate. The other mechanism is that of debt operations. Last month, the Albanian government borrowed 650 million euros in international markets.
In the first six months Paraguay Phone Number Listof the year, the state budget closed with a surplus of 46 billion ALL. So, in the January-June period of this year, the government took from the market through taxes, levies or other sources 46 billion ALL more than it returned through spending. This money lies dormant under the government's mattress. And yet, surplus does not tell the whole story. In addition, there is money received through internal borrowing. According to official data, for the first half of the year, the government received another 33.6 billion lek through borrowing in the domestic market. This is the drying up of the market from liquidity on a large scale.
Read also: What is hidden behind the propaganda with the objective "10 thousand euros per capita"? Activists: Bill on 'Protected Areas' violates EU directives To put it briefly, only through the budget balance and internal borrowing, the government has taken 80 billion ALL from the market without giving it back. So the supply of the national currency in the market is 80 billion lek less than it should be under normal conditions. The less lek there is in the market, the more the national currency strengthens against all other currencies. But the shrinking of the lek supply in the market is only one mechanism through which the government is massively influencing the exchange rate. The other mechanism is that of debt operations. Last month, the Albanian government borrowed 650 million euros in international markets.