Lek Pitfall To Euro

TIRANA, Sep 24 – The Albanian currency, the lek, on Thursday was highly devaluated to the European currency Euro.
The lek had an immediate devaluation to 140 leks per euro from 134 a day earlier.
There was no immediate or open reason for that fall.
It sparked however the immediate concern of the central Bank of Albania and the Finance Ministry faring the fall could continue in the net days.
The BoA Governor Ardian Fullani called on the local financial agents not to spread fear among the population, adding that the fall had no economic basis to occur at this moment.
Albanians get immediately threatened and frightened in such moments remembering their harsh times and their life savings lost during the fall of the fake pyramid investment schemes 12 years ago.
The Finance Minister, Ridvan Bode, on the other hand blamed the opposition for forecasting such a fall but gave no concrete reason for the fall. He said that the country’s economy was on track according to the government lines. He said that the country had no devaluated its currency earlier this year when the other entire world and regional currencies had the negative effects of the financial global crisis. He said that such a fall only for the Euro is not justified.
But he likely forgot to say that the new realigned budget had less collected Money from the taxation and other resources and that the budget was being realigned with a higher deficit.
Many also turned their finger to Prime Minister Sali Berisha who said last week that the country and the region should make Euro their national currency. Both senior officials mentioned above turned down such a claim saying that the lek was still the country’s currency and that it was also a strong one, something it had shown in the last 17 years of the post-communist time.
Experts had also predicted a fall of the lek to the Euro mentioning the fact that the government has signed a 250 million euro loan from the banks.
The government outcry should also be accompanied with other financial steps in order not to let the lek fall further to the Euro. Or the negative consequences to Albanians, still considered Europe’s poorest (but Moldova) may be greater and worrisome.(Tirana Times Staff)