TIRANA, Nov. 18 – The euro hit a 39-month low against the Albanian lek this week in an unusual situation for this period, fuelled by low demand for Europe’s single currency. Data from the central bank’s fixed exchange rate data shows the Euro dropped to as low as 137.67 lek this week, registering the lowest level since August 2012 when it traded at an average of 137.35 lek.
The euro also hit a seven-month low against the U.S. dollar this week as markets were shaken by the weekend terrorist attacks in Paris and expectations of an interest rate hike from the Federal Reserve.
The Albanian national currency has appreciated by 2.24 percent against the euro since June 2014 when the euro traded at a record high of 140.82 lek.
The U.S. dollar traded at 128.86 lek this week, up from an average of 124.21 lek last October and 112 lek in Nov. 2014 similarly to April 2015 when at 129.97 lek it hit a 12 year high against both the lek and Euro as international oil prices stood at a historic low.
Experts explain lek’s strengthening at this unusual time with lower demand for euro as lending has dropped to moderate negative growth rates and imports have slightly contracted and continuous demand by the government to borrow in Euro from the domestic market.
