Albanians Prefer this Currency for their Savings, over Lek

TIRANA, July 31

The Albanian economy seems it is growing the ability to create savings. According to data, based on the latest report published by the Bank of Albania, from January-June 2019, the total savings of businesses and Albanian families, reached the value of Lek994 billion. An increase of 2% compared to the same period of 2017. After 2015, the increase of deposits was almost stopped, because of the decrease of interest norms, research for the most profitable investment forms and the increase of the expenses for private consume in the economy.

However, with all the attempts to reduce the level of euroization and the devaluation of Euro in the exchange rate with the Lek, the EU currency remains the most preferred currency to keep as savings by Albanians. In the middle of this year, the deposits in foreign currency had the value of Lek535 billion, an increase of Lek22 billion compared to 2018. They make up almost 54% of the total deposits of the public in Albania.

Meanwhile, the savings in Lek currency, have remained at the same levels as the previous year. An explanation of why the deposits are increasing only in foreign currency could be the few alternatives regarding the investments in the Euro currency. Many Albanians, have invested their savings in Lek in the form of investment funds, pensions or obligations by the Albanian government. Whereas, for the Euro, the alternatives are fewer and the returns from the investments lower. However, the increase in the savings in the Euro currency is concentrated mainly on individuals.


Read also: Albanians Optimist About the Economy, but Reality Disappoints Them

Leave a Reply

Your email address will not be published.