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The Euro is banking on the ECB
Developing
In Short: The euro is on the rise as markets anticipate a tightening cycle by the European Central Bank (ECB), but caution from ECB President Christine Lagarde and potential declines in US Treasury yields could lead to a EURUSD sell-off, according to FXStreet.
In Albania, the amount of cash held outside banks has surged to over 522 billion lek, or approximately 5.6 billion euros, according to Tiranatimes.
Preçi, a source cited by Tiranatimes, noted that this cash outside the banking system is part of the informal economy and includes money from criminal activities, both within and outside the country.
Economists argue that while cash outside the banking system cannot be automatically classified as informal or illegal, the unusually high level raises important questions about the size of Albania’s cash-based economy and the sources of some of the funds circulating beyond the banking system.
What's still developing
- Summary: The euro is rising on expectations of an ECB tightening cycle, but Lagarde’s cautious stance and a possible decline in US Treasury yields could trigger a sell-off in EURUSD.
- The scale of the phenomenon appears even more significant when compared with European Union countries, where, according to the figures cited in the report, cash outside the banking system does not exceed around 9 percent of the overall money supply.
Sources
- Tiranatimeslink