ALL (Albanian Lek)

What Is the Albanian Lek (ALL)?

The Albanian lek (ALL) is the national currency of the Republic of Albania. The plural of lek is lek\u00eb, with one Albanian lek comprising of 100 qindarka. Due to inflation, qindarka-designated coins are not generally issued yet at the same time accepted as legal currency.

As of December 2020, US $1.00 is equivalent to roughly 101 ALL, or 1 ALL is about $0.01.

Figuring out the Albanian Lek

The Albanian lek (ALL) utilized in the Republic of Albania was first issued for circulation by the National Bank of Albania in 1926. The currency gets its name from Alexander the Great, as the shortened form of he goes by Leka in Albanian. Before 1926, Albania didn't have its own national currency and stuck rather to a severe gold standard or depended on foreign money in exchange. Before the First World War, the Ottoman Turkish piastre circulated widely in the region.

After World War I, the country saw a succession of the military occupations by different powers, who might impose their own currency as legal tender. The gold franc or franc germinal turned into the most widely utilized monetary unit during that time. Since Albania had no official money, individuals likewise utilized the currencies of lining countries pegging the rates of exchange for gold.

Albania has applied for participation into the European Union (EU), with official discussions beginning in 2020. Whenever accepted, Albania will probably switch over to the common euro (EUR) currency.

History of the Albanian Lek

The first lek\u00eb stamped were bronze coins presented in denominations of 5 and 10 qindarka alongside nickel coins issued in 1/4, 1/2, and 1 lek denominations, and silver 1, 2, and 5 franga. The franga is presently an obsolete unit of currency, equivalent at the opportunity to 5 lek\u00eb. Franga coins were utilized from 1926 until 1939 and portrayed Zog I, King of the Albanians.

During Albania's capitulation to Italy in WWII, the issue of another series of coins under the course of Benito Mussolini happened. The coins have a picture of Victor Emmanuel III, the then King of Italy, and circulated until 1941. After the freedom of Albania from Nazi occupation in 1947, the socialist faction assumed command over the country. The new authority eliminated more seasoned coins from circulation, giving new coins showing the communist national crest. The new zinc coins have denominations of 1/2, 1, 2, and 5 lek\u00eb. This currency was pegged to the Soviet ruble and was being used until the currency reform of 1965.

During the Soviet occupation somewhere in the range of 1946 and 1965, the lek was pegged to the Soviet ruble at 12.5 lek\u00eb to 1 ruble until 1961 and 1.25 lek to 1 ruble somewhere in the range of 1961 and 1965 after the ruble was redenominated. After 1965, the revaluation of the ruble made imbalances in exchange, causing the issue of a subsequent lek. The second series of lek exchanged with the primary lek at a rate of 10 old lek\u00eb to one new lek.

The most common banknote denominations are by and by 200, 500, 1,000, 2,000, and 5,000 lek\u00eb. The 2,000 lek\u00eb banknote accompanied the third issue of ALL in 1996.

Albanian Political and Economic History

The Republic of Albania holds a strategic position in the Balkan Peninsula due to its bluff lined shore on the Adriatic Sea. The area declared independence in 1912 from the Ottoman Empire and started presence as a territory. There was initially strife between the socially and strictly separated bunches bringing about long winded fighting between groups.

Somewhere in the range of 1925 and 1928, the principal Albanian Republic fell under a tyrant system that tried to reestablish stability to the region. The Italians, be that as it may, forced the system to acknowledge Italy's influence over trade and transportation, which ended the short life of the initial republic and changed over it into a government. To fix its hold on the area, Italy accordingly moved troops into the region, possessing the domain until 1943. Albania momentarily fell under Nazi Germany's influence during WWII during which time fighting devastated the country and its population.

As the Axis powers melted away, the Soviets moved in, freeing the country. Albania turned into a socialist state, the People's Republic of Albania. During Soviet rule, the area industrialized quickly and its economy developed. Simultaneously, the nation ran up debt with its partners, the Soviet Union, China, and Yugoslavia.

With the fall of socialist rule in the late 1980s into the 1990s, Albania formed its fourth republic in 1991. Corruption, nonetheless, saw a significant part of the country's money squandered on government-upheld Ponzi plans and banking fraud. For example, numerous residents were constrained to sell their homes and take out loans to invest in these scams, which fell in 1996. Fights ejected across the nation, which turned savage and expelled the sitting government.

Starting around 2019, World Bank data shows the country has a 2.2% annual gross domestic product (GDP) growth with annual inflation at 0.4%.

Features

• The currency has lost value over the long run against world currencies as the country has been subject to several emphasess of shift in power infighting.
• The Albanian lek (ALL) is the official currency of Albania, which has been being used starting around 1926.
• Prior to the lek, the country involved gold as currency or depended on foreign issue, for example, the Ottoman piastre or franc germinal.
• Albania has applied for EU participation, and in the event that approved will probably switch over to the commonly involved euro as official currency.