Albanian Lek depreciation accelerates (Update)
Banking & Finance, Business, Economy, Top News Thursday, September 24th, 2009Tirana, Sept. 24, 2009 (AE)
Minister of Finance Ridvan Bode urged Albanians today to believe in their national currency. In a speech in the parliament, Bode said: “Albanians should believe in Lek because it is the strongest currency in the region and has been stable during the last ten years.”
Albanian currency Lek lost more then 3 per cent in two days causing panic in Tirana. Euro changed hands for as much as 138.6 lek in early morning on Thursday, 1.7 per cent higher then Wednesday. In midday, Lek was quoted at 137.8, 1.1 per cent lower then in Wednesday.
Lek has been under harsh pressure during whole 2009, mainly due to strong government expenditures and lower lower remittances. Its value diminished by 12 per cent since January.
The government has increased its expenditures by 25 per cent year on year till August while its revenues increased by only 5.5 per cent. Its cash deposit in the central bank diminished to 7 billion lek in August, the lowest level in a year. Some experts thinks that in the next few months, the government finances poses real risks for the country’s macroeconomic stability.
Albanian Lek has shown stability toward Euro since 2004, fluctuating between 120-126 Lek per Euro.
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