Albanian Lek, lost battle with Euro

30/04/2011 15:35

ALL is constantly losing terrain against Euro, breaking new records on
the market. This weekend, the exchange rate was at a record
braking of 142.4 ALL.

This increase happened during the week. Data indicate that the average monthly ALL-Euro rate is showing continuing ALL devaluation starting from the beginning of the year. In April, one Euro costs 3 ALL more than in January.

Bank experts say that ALL devaluation is due to high demands for the European currency.

Beyond the inner causes, the domestic exchange rate is following the tendencies of the international currency markets. In the recent months, Euro has gained terrain against USD, with an exchange rate of 1.49 USD, the highest level since December 2009.

Central Bank experts say that the same tendency is being reflected in Albania. While Euro has increased from 138 ALL to 142 ALL, the US Dollar, on the contrary, plunged from 105 ALL to 96 ALL. On first look, it seems that the Albanian Lek has been balanced towards the two main foreign currencies, reflecting this way the international market fluctuations. 

But since most of the Albanian economy is based on Euro, the Albanian family budget does not feel any balance. More families are penalized by the Euro than have felt the gains towards the dollar. The Governor of the Albanian Bank declared that the currency rate is heading towards a new balance. This balance, according to some experts, might have a strong effect on the Albanian economy. A strong Euro not only traumatizes the budget of those who have mortgages in Euro, but also hampers the Albanian public debt.

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