The Lek weakens to the Euro

TIRANA, March 17 – Despite efforts from the central Bank of Albania to keep a stable exchange rate primarily with the two main hard currencies in the country, the Euro and the dollar, the first saw another strengthening of its rate earlier this week.
The Euro moved up from 130 leke to 132 leke Monday.
That may be justified with different reasons, despite government ‘pressure’ that the country’s economy has yet to be negatively affected by the global financial crisis.
First it could be to the fall of the immigrants’ remittances from 947 million in 2007. Figures for the first nine months last year showed they were 623 million Euros.
The other could be a fall of the foreign direct investment in the country. Despite the recent big contracts to build new power plants they have yet to start the application or the construction and the money is yet to come.
Poverty has naturally reduced the market move and in January a 10-20 percent fall of the trade exchange was noticed compared to a year ago.