Immigrant’s arrival strengthens lek

TIRANA, August 2 – The arrival of thousands of migrants and the peak of the tourist season has as expected caused a slight appreciation of Albania’s national currency, lek, against the main two foreign currencies, the Euro and US dollar.
Exchange rate data show the Euro and US dollar have been losing ground against Lek for the fourth week in a row.
One euro averaged about 135.3 lek this week, down from 136.5 lek the previous week according to the Bank of Albania and inter-bank agencies, Meanwhile, the dollar fell to 103 leks, depreciating by 2 lek compared to the previous week.
The performance of the Albanian lek is linked 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.