The lek strengthens, the doubling of the interest rate gives the first effects

According to the Bank of Albania, the local currency has appreciated by almost 1.3 lek against the euro since this decision was made, causing the European currency to drop to 121.5 lek on Friday. (tab 1 euro / lek)

But experts say it will take time for the effects of the policy to materialize.

“Monetary policy decisions are not broadcast from today to tomorrow, they require at least a few months to a year, a year and a half. The strengthening of the lek will have an impact in relation to the persons, institutions that have loans in euros and incomes in lek and buy euros every month to repay it and a strengthening of the lek makes it easier. ”

Civil shows who are the losers and winners of a strong lek.

“This increase in the key interest rate is expected to have an impact on the increase of interest rates on deposits, on the other hand it may affect the increase of interest rates on loans. The strengthening of the lek also helps some of the businesses that export, but whose main expenses are in lek. ”

The European currency appreciated significantly at the beginning of March, reaching the highest level this year at 127 lek, but fell again in the following days. These moves experts explain relates mainly to the uncertainties of the crisis.

“The immediate rise of the euro a few weeks ago was more a reflection of a total market distortion, including the monetary market, influenced by many news items. “The return to the most stabilized historical trends of the euro is a result of the reflection of businesses and many market actors to see more consistently the economic and trade situation.”

The increase in the key interest rate from 0.5% to 1% after almost more than a decade, by the central bank, aims to curb the strong rise in prices in the country that have been holding the inflation level above the central bank target for months, according to which is still expected to fluctuate around the 5% level.

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