OCA and Albania

The optimum currency OCA theory is still a continues approach related to the dynamism of the monetary unions. Many developing countries aspire entering a union and being part of a group. Albania is an European country which aims to join the EMU and EU in the future. Before entering the European Monetary Union, there are some criteria to be fulfilled and met. There are some parameters which need to be analyzed and which explain the exchange rate volatility, especially the asymmetry of shocks. The main macroeconomic indicators weighting the Eur-Lek exchange rate volatility, are evaluated by an adapted empirical model, checking if the conditions are met. Is Albania ready to join Eur currency ? The estimation done by OCA index, based on a work developed by Bayoumi and Eichengreen, and there after Horvath, serves to generates the results and arrive in the conclusions.

Autorentext
Lisnaja KELMENDI is graduated in Finance on 2005. She is currently a PHD candidate in Statistics in the University of Tirana and holds a Chartered Accountant certificate . She has been teaching Financial and Banking Management as a part-time lecturer during academic years 2009-2011. She has been working for Raiffeisen Bank Albania since 10 years.