The euro has gained ground against the Albanian lek in recent days, rising to 98.75 lek per euro, according to the Bank of Albania’s official exchange rate. This marks an increase of 0.55 lek in just one week, reaching its highest point since October 2024.
Experts say the rise is due to a higher demand for foreign currency from businesses, driven by expectations of increased imports. While businesses usually increase their demand for euros at the end of the year, this year’s surge has come later, aligning with Albania’s economic cycle.
Despite the recent increase, the euro is still down about 5% compared to last year. The exchange rate closed 2024 at 98.15 lek, close to its historical low. For most of January, the rate stayed stable around 98.2 lek.
Foreign investments continue to support the lek, with direct investments reaching €1.16 billion in the first nine months of 2024, up by 6.6% compared to last year. However, Albania’s current account deficit widened during the same period, although it remains at the second-lowest level in history.
Government spending and a record budget surplus have also helped strengthen the lek, limiting the supply of local currency and pressuring the euro down.
