Euro hits historic low against Albanian Lek

The Euro has reached a new historic low against the Albanian Lek, closing the week at an official exchange rate of 92.85 Lek per Euro, according to the Bank of Albania. Since the beginning of the year, the Euro has depreciated by 4.1%, while it has fallen by 4.4% compared to the same period last year.

Market analysts attribute the recent decline of the Euro primarily to the tourism season, which has increased foreign currency inflows. Data from INSTAT shows that foreign arrivals rose by 6.2% in the first six months of this year. Additionally, the Bank of Albania reported that the current account deficit fell to 228 million euros in the first quarter, a 28% decrease compared to the previous year.

Foreign direct investment reached a record 404 million euros for this period, marking an 11.6% increase year-on-year. The Bank of Albania notes that these improvements have increased currency supply in the local market, putting upward pressure on the Lek. While official data links currency fluctuations to trade and service exchanges, public perception suggests that informal or criminal activities also influence currency inflows through real estate investments.