Exchange rate mechanism and convergence criteria: the most important challenges for countries aspiring to eurozone integration
Msc. Elona Fejzaj, Msc. Fiqiri Baholli
The exchange rate regime is a key determinant of a country’s macroeconomic stability, which in turn affects the investment climate. Albania has signed the Stabilisation and Association Agreement with European Union and is working to become a candidate for the accession to EU.
Foreign exchange regime of the Republic of Albania has positively contributed to the macroeconomic stability of the country. This contribution is of a great importance on meeting the convergence to the Maastriht Treaty and regulations applied from ERM 2 (Exchange Rate Mechanism). This is also an evidence of the effectiveness of monetary policy in defending the exchange rate of Albanian Lek during speculative attacks.
Key words: Bashkimi Monetar Europian, Konvergjencë, Mekanizmi i kursit të këmbimit (ERM), Politika monetary, Traktati i Maastrihtit.