The Euro-Lek exchange rate has started the week in further decline and has touched a new historical minimum.
According to the official exchange rate of the Bank of Albania, the European currency was exchanged today for 91.1 lek, the lowest level ever recorded. The annual decline in the Euro-Lek exchange rate is expanding further and has reached the level of 6.1%.
According to foreign exchange market experts, the market is showing weak demand for the Euro, while the supply of the European currency remains high.
In addition to the inflows from tourism that are now present almost year-round, sources say that a high supply of Euros is also coming from automatic financial transactions processed through the banking sector, such as purchases with credit cards in foreign currency or the banks' own income from interest on financial instruments in foreign currency.
Statistics have shown an improvement in the Balance of Payments this year, a factor that can largely explain the faster decline of the Euro this year.
For the first half of 2026, the current account deficit decreased by almost 41% compared to the same period last year. The current account deficit for the 6-month period also marked the lowest level since 2018.
The deficit reduction has come mainly from the increase in exports of services and remittances. The increase in foreign direct investment is also having an impact on the overall balance of payments. For the first 6 months of 2026, the total value of foreign direct investment reached 1.144 billion euros, an increase of 50% compared to the same period last year.
Also, an additional effect seems to have been exerted by the high fiscal surplus, which has reduced the supply of Lek in the market. For the 8-month period of 2026, the budget was in surplus at the value of 61.6 billion Lek, an increase of 52% compared to the same period a year earlier.
Faced with increased pressures on the exchange rate, the Bank of Albania has further increased its foreign exchange purchases this year.
According to information on money market interventions, during the second quarter of this year, the Central Bank purchased a total of 524 million euros, a figure 224% higher compared to the same period a year earlier.
Of these, 143 million euros were purchases made through programmed auctions, in order to increase the foreign exchange reserve, while 381 million euros were direct purchases, in fulfillment of monetary policy and financial stability objectives.
Adding the 139.6 million euros purchased in the first quarter auctions, the total value of purchases for the first half of 2026 has reached 663.6 million euros.
The purchases in the first half of 2026 are following the trajectory of large purchases of foreign exchange by the Bank of Albania starting in 2024. In the period 2024-2025, purchases reached a value of more than two billion euros. Last year alone, the Bank of Albania purchased 1 billion and 27 million euros in the domestic market./ Monitor
