Euro hits record low against Albanian lek as exchange rate falls to 93.64

The euro slipped to a historic low of 93.64 lek, the weakest level ever recorded. Since the start of the year the euro has depreciated 3.2% against the lek, with a 4.2% decline on a year‑over‑year basis. Seasonal tourism drives a higher supply of foreign currency, while Albania’s strong current‑account surplus, rising foreign‑direct investment and expansionary fiscal policy have helped strengthen the lek.

The Bank of Albania is attempting to moderate the euro’s fall by purchasing large amounts of foreign currency. It has bought more than €2 billion in the 2024‑2025 period and plans additional purchases of €330‑€450 million this year to boost reserves. However, inflation running above the 3% target makes such purchases harder to justify. A stronger lek lowers import prices and eases inflation pressures but harms export‑oriented sectors such as garment manufacturing and reduces the competitiveness of tourism, which has benefited from the perception of lower costs for visitors.