Commerce, unstoppable Euro
06/06/2011 15:30
State nurse is paid without going to work, instead sells drugs from the pharmaceutical warehouse with the support of the director in Bushat 18/04 21:24
Albanian Lek (ALL) continues its devaluation against Euro, signing other
historical records. This weekend, for the first time in its history, the European
currency broke the record of 142.5 ALL for 1 Euro.
Euro had other hikes during the week. Currently, one Euro is exchanged in the inner market (according to Bank of Albania) with 142.55 ALL, breaking the record set in the beginning of May, when Euro reached 142.46 ALL.
The tendency has favored the European currency since the beginning of this year. One Euro today costs 4 ALL more than in the beginning of the year, but compared to the same period of one year ago, one Euro is 6 ALL more expensive.
The general tendency of Lek against Euro is devaluation, despite rate fluctuations. Besides market rates, bank experts say that the high commercial deficit has caused a greater demand for Euro in the market. If this high demand was handled in the past years by the offer, which had a strong supports from mortgages that Banks gave in Euro. But in the last years, this has changed.
Having less mortgages in Euro, the market has had an absence of this currency, causing ALL to devaluate. A strong Euro might be advantageous for Albanian exports, but this has its cost too. Despite increasing imported goods prices and other prices in markets, the ALL devaluation affects the families who have mortgages to pay in this currency. For an individual who has to pay 350 Euros of monthly installments, this bill today costs 2100 ALL more than before.
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