[REVISION HISTORY]

Albanian lek appreciation vs euro

Updated 3 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-21 10:07 UTC → 2026-08-22 15:57 UTC · added ~~removed~~

By mid-August 2026, the euro reached a new historic low against the Albanian lek, closing at 92.85 lek per euro. This represents a 4.1% depreciation of the euro since the start of the year and a 4.4% decline compared to the same period in 2025. Analysts attribute this continued downward trend to several factors. The peak tourism season has significantly increased foreign currency inflows, supported by a 6.2% rise in foreign arrivals during the first six months of the year. Furthermore, the Bank of Albania reported that the current account deficit fell to 228 million euros in the first quarter, a 28% year-on-year decrease. Foreign direct investment also reached a record 404 million euros for the period, marking an 11.6% increase. While official data links these fluctuations to trade and service exchanges, there is public perception that informal activities and large-scale real estate investments also influence currency inflows. Despite the Bank of Albania having withdrawn approximately €2.2 billion from the market since early 2024 to stabilize the rate, the increased currency supply continues to put upward pressure on the lek. By late August, the lek's appreciation continued, with the exchange rate reaching a low of 92.76 lek per euro. The Bank of Albania reported that domestic currency trading volumes hit a record high in the second quarter, reaching nearly 4.5 billion euros, a 30% increase year-on-year. Additionally, the annual growth of the M2 monetary aggregate reached a historic high of 15.9% at the end of June, driven by high rates of economic lending and central bank interventions. Recent developments indicate a surge in credit demand, with the private sector credit portfolio expanding by 14% year-on-year in the second quarter. Businesses reportedly utilized 61.7% of these funds for investments and capacity expansion.

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