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Testing The Foreign Exchange Market Efficiency For Euro / Albanian Leke During The Period 01 January 2002 – 31 December 2012

Author

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  • Ornela Shalari

    (University of Tirana, Faculty of Economy, Mathematics, Statistics & Applied Informatics Department)

  • Areti Stringa

    (University of Tirana, Faculty of Economy, Mathematics, Statistics & Applied Informatics Department)

Abstract

The main purpose of the study is to test the foreign exchange market efficiency for euro / Albanian leke during the period 01 January 2002 – 31 December 2012 in Albanian currency market. The results of this study include: 1. The informational efficiency is rejected for daily exchange rate euro / Albanian leke during the period January 2004 – December 2012 at the 99.99% level of confidence. 2. The Albanian foreign exchange market was inefficient regarding to the relative changes in the daily nominal exchange rate euro / Albanian leke during the period January 2004 – December 2012 at the 99.99% level of confidence. 3. The Albanian foreign exchange market was inefficient regarding to the monthly exchange rate euro / Albanian leke during the period January 2002 – December 2012 at the 99.7% level of confidence. 4. The Albanian foreign exchange market was inefficient regarding to the relative changes in the monthly exchange rate euro / Albanian leke during the period January 2002 – December 2012 at the 99.8 % level of confidence. These findings are noteworthy because it has long been through of that the movements the euro / Albanian leke nominal exchange rates must be a fair game.

Suggested Citation

  • Ornela Shalari & Areti Stringa, 2013. "Testing The Foreign Exchange Market Efficiency For Euro / Albanian Leke During The Period 01 January 2002 – 31 December 2012," EuroEconomica, Danubius University of Galati, issue 1(32), pages 126-135, May.
    • Handle: RePEc:dug:journl:y:2013:i:1:p:126-135
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    References listed on IDEAS

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