Interpretation of exchange rate volatility in the light of economic fundamentals comprises an issue of interest for policymakers when it comes to implementing the monetary policy. Understanding the impact of economic news on the Lek exchange rate against two main hard currencies, Euro and US dollar, would serve to better orient the monetary policy and forex market agents positioning in time. Exchange rates volatility on economic news in short-term is an often discussed phenomenon in the economic literature, but through this material we tend to measure these effects in the Albanian foreign currency market and contribute in the literature interpreting foreign currency markets volatility in developing economies. Very often, domestic foreign exchange movements are attributed to developments in large international markets. In the case of Albanian Lek volatility analysis, we tend to find answers regarding the importance of economic news coming from the two main economies in focus, Eurozone and the US. Furthermore, we investigate the importance of the economic information flow in Albania in determining the Lek exchange rate against Euro and US dollar. For a period in focus from January 2007 until July 2012, we try to understand if the exchange rate volatility has been a result of economic fundamentals or financial markets stress related economic news.

In a continuous challenge for increasing economic growth pace, Southeastern Europe economies need to explore all contributing channels to this process. Previous researches do not find a significant relation between financial development and economic growth in SEE countries but up-to-date analyses are missing in this front. This paper aims to investigate the finance-growth links in a representative group of ten SEE economies through empirically analyzing with panel data techniques the latest data available, and try to understand if implementation of financial regulatory frameworks and economic reforms during the last decade has contributed in making financial sector development significant for growth. In this context, obtained results show that credit to private sector, is the only financial development indicator that has become became significantly important in short-run in positively affecting economic growth. While Liquid liabilities and Assets ratio have no significance, seems that financial sector reforms need to continue in order to enhance the causal relation between finance and growth.