Albania’s currency gaining, as euro reaches 10-month low against American dollar
TIRANA, March 24 – The week saw a trend of Albania’s currency gaining ground against the euro, as the European currency reached a 10-month low against the American dollar.
A euro averaged about 139 leks this week, bottoming out at 138.5, according to the Bank of Albania and inter-bank agencies, while the dollar gained some ground at about 103 leks.
The performance of the Albanian lek is lined to the larger picture of the exchange between the dollar and the euro, where euro reached a ten-month low against the US dollar over concerns about Greece’s debt crisis.
But the relationship to the Euro is far more important to the Albanian currency at this point since most of Albania’s foreign trade is done with Euro Zone countries.
The European currency is facing one of its biggest tests of its decade-old existence. The fiscal woes of euro zone member Greece are sparking fears in the financial markets that Athens will default on its debt – and concerns about other weak euro economies.
Much of the concern in financial markets has been centered on Greece, which is struggling to curb a soaring deficit amounting to 12.7 percent of its Gross Domestic Product.
Another reason that has led to the increase in value of the U.S. currency is the fact that the U.S. economy is showing signs of recovery.
Observers of Albania’s economy also note that the changes in the lek are not that different from free-floating currencies in developed countries.
The lek has been a strong a stable currency in Albania, even in years of political turmoil that saw neighboring countries fighting hyper inflation.
