Albanian Lek, devaluation continues

Inner markets exchange 1 Euro with 141.5 leks, even higher than during the international financial crisis of two years ago.

Businessmen say that on the recent week, Lek has experienced plunges on each day. The causes, according to them and to bank experts, are many.

Firstly, the exchange rate is being dictated by international market events. The difficult deal achievement of the American budget and the hike of European Central Bank interest rate have directly affected international markets, with Euro reaching the highest peak against dollar at about 1.45 dollars. These movements are also being reflected on our inner market.

But this time, the Lek devaluation against Euro seems mainly connected to inner causes. Dealers say that the Euro demand is currently higher than the Albanian market offer.

The banks have been collecting Euros recently for selling it to foreign companies that operate in Albania, which are in the season of closing their balance sheets and transferring profits abroad.

Predictions remain uncertain. Although currency stability has been considered as one of Albania’s strongest economic points in the last couple of years, EU-Lek market fluctuations have been seen more frequently.

Despite actual movements, EU-lek exchange tendencies have been those of lek devaluation. This situation affects Albanians in many aspects, mainly by mortgages paid with Euros, but also on the price of many products, biggest part of which is imported because of the lack of domestic production.

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