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The Euro-Lek exchange rate falls again, heading towards the threshold of 95 Lek

Politiko 2026-06-04 14:33:00

The Euro-Lek exchange rate falls again, heading towards the threshold of 95 Lek

The Euro/Lek exchange rate has fallen further this week and has reached a new historical minimum. According to the official exchange rate of the Bank of Albania, the Euro was exchanged today for 95.29 Lekë, the lowest level ever recorded.

Since the beginning of the year, the Euro has depreciated by 1.5%, while on an annual basis the decline of the European currency has reached approximately 3%.

According to foreign exchange agents, with the entry into the summer season, it is expected that the downward pressure on the Euro will strengthen, due to the increase in foreign exchange inflows related to tourism. It is likely that a slight downward trend in the Euro-Lek exchange rate will continue, despite the continuous interventions of the Bank of Albania.

The Central Bank is regularly intervening in the foreign exchange market this year as well, to curb the pace of the Euro's depreciation. Information on foreign exchange market interventions during 2026 has not yet been made public, but looking at the figures of the last two years, it can be hypothesized that the Bank of Albania is continuing to withdraw significant amounts of foreign exchange from the market.

According to official statistics, last year the Central Bank bought 1 billion and 27 million euros, to increase the foreign exchange reserve, but mostly in order to curb the strengthening of the Lek exchange rate. The amount of foreign exchange purchased increased by 10% compared to the previous year. In total, in the period 2024-2025 the Central Bank has purchased approximately two billion euros in the foreign exchange market, purchases that have only slowed down the decline of the European currency.

So far, even the increase in inflation of imported products, mainly fuels, does not seem to be having any impact on increasing demand for foreign exchange and curbing depreciation pressures on the Euro.

This proves that foreign exchange inflows into the Albanian economy remain high. They are mainly related to tourism, foreign investments in property, in addition to informal flows, which remain a significant factor in public perception, despite the fact that their real weight cannot be measured.

The continuous decline of the Euro over the last decade, especially accelerated in the years after the pandemic, has brought about significant structural changes in the Albanian economy and has hit exports, especially in those sectors that use cheap labor. A further decline in the exchange rate will increase pressure on the competitiveness of exported products and services, starting with the tourism sector.

On the other hand, the fall of the Euro is estimated to have had a positive effect on domestic consumption of imported goods and services. Although in most cases there can be no talk of price reductions, the strengthening of the Lek has allowed for a more limited increase in prices, especially in the period 2022-2023, but has also partially allowed importers to amortize increased labor costs and wage increases. /Monitor

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