The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This Selected Issues paper and Statistical Appendix analyzes causes and consequences of real exchange rate appreciation in Albania. The paper highlights that Albania has experienced a sustained real appreciation since 1992, which appears to have been brought about by largely beneficial developments: price liberalization, productivity growth, external inflows, and a successful stabilization policy. The pace of appreciation has slowed in the last few years, and a real depreciation in 2002 has brought the real effective exchange rate back to its January 2000 level.