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Albania plans to adopt euro

(Xinhua)
Updated: 2009-09-18 05:34

Albanian Prime Minister Sali Berisha said on Thursday that his country hopes to eventually replace its currency lek with euro to bolster its economy.

Berisha told a conference of regional central bankers that stronger euro has put an enormous pressure and great influences on the Albanian currency lek and the Albanian economy as a whole.

The euro soared to 133.59 leks on Wednesday from 123.6 at the start of the year. It was believed that the appreciation of the euro was caused by the decrease of foreign currency revenues.

Remittances from Albanians working abroad totaled 394 million euros ($579.57 million) in the first half of 2009, dropping by 6.1 percent compared to the same period of last year.

Around 70 percent of loans in Albania are in euros and the appreciation of the euro is hurting borrowers, who end up owing more in lek terms when the euro appreciates.

"The economy is getting deeply involved in euros. Adopting the euro, it will be better sooner," Berisha said.