Facts showing the impacts on the devaluation of the Euro in 2023 and 2022

During 2023 there is an entry:

of Euros and other foreign currencies at the converted level of 4 billion Euros and an exit from Albanian visitors to foreign countries at a level of 55% of this value, which means that they have left the Albanian market.
of remittances that tend to reach the level of 1.3 billion Euros (including in this amount remittances in British Pounds, Dollars and other currencies)
of foreign investments, are expected to result in the value of up to 1.2 billion Euros
of taking on new debt, where for 2023 it goes up to 1.2 billion Euros
public investments in 2023 are expected to reach over 120 billion Lek, which stimulates the supply of the Lek and affects its weakening
the increase of the basic interest rate by 0.5% throughout the year

From the ranking of influencing factors above, a monetary offer in Euros and other currencies nets up to 1.2 billion Euros according to the influences on the Albanian market. All these factors have an impact on the devaluation of the Euro by 12.7% throughout the year, as they are the ones that affect the large monetary supply in the market.

During 2022:

the trade deficit is 463.6 billion ALL (4 billion Euros)

Foreign exchange inflows from tourism (Euros and other foreign currencies) were 2.84 billion Euros and foreign currency outflows were 62% of the incoming amount (1.7 billion Euros).

remittances were worth 834 million Euros

foreign investments were worth 1.37 billion Euros

the new debt was 617 million Euros

public investments were 112 billion ALL

interest rate increase 2.25%

From all the factors above, a monetary supply in Euro and other currencies results in 1.17 billion Euros and have an impact of 5.1% in the direction of the depreciation of the Euro.

If we now return to the economic reality that has been designed as a functional model in these three decades, our model seems to have been based on imports more than exports. The high level of imports indicates strong domestic demand and a growing economy in terms of consumption growth.

If these imports are mainly productive assets, such as machinery and equipment, as we see in the 2023 import statistics, this bodes well for the future as productive assets will improve the productivity of the economy in the long run. But, if these machines and equipment are not used for production, but for infrastructure and expenses that do not contribute directly to the products for export, then their beneficial value is lost in time and this advantage as above does not give impact even in the case when the coordination is weak can also result in ineffective investments.

Albania in this case is using this whole approach not in full functionality.

With these official indicators, it remains in the hands of the institutions that have the duty of transparency and accountability to justify the distortion of the market and the influences on it of factors outside the formal economy.