The euro falls further, dropping below 96 lek for the first time

The euro’s exchange rate against the Albanian lek closed the week with a further decline, falling below the 96 lek mark for the first time. According to the official exchange rate of the Bank of Albania, on Friday the euro was exchanged at 95.89 lek, the lowest level ever recorded.

The decline in the exchange rate is also becoming evident on a yearly basis. Compared to the same period last year, the euro-lek rate has fallen by 3.3%.

Currency market participants told *Monitor* that the recent drop in the euro is mainly due to large conversions carried out by businesses, which have exchanged substantial funds from euros into leks. This increased the supply of euros in the foreign exchange market and further pushed down the exchange rate, continuing a multi-year trend.

Another factor influencing the euro’s decline is the reduced presence of the Bank of Albania in the currency market. For roughly two years, the central bank has been purchasing large amounts of euros to slow down the downward trend in the exchange rate. This intervention has been primarily motivated by inflation targets and to limit the deflationary effect of a strengthening lek.

However, currently, the Bank of Albania appears to be taking a more restrained approach, allowing the exchange rate to follow its natural course. This may explain why the euro’s decline has accelerated in recent weeks.

Official data show that during the first nine months of 2025, the Bank of Albania purchased a total of 825.6 million euros in the domestic currency market. This is the highest historical level of euro purchases by the Bank of Albania for this period of the year. Compared to the same period last year, currency purchases increased by 52.2%.

For 2026, the Bank of Albania plans to further increase its currency purchases in the domestic market, aiming to buy between 330–450 million euros through auctions to boost foreign exchange reserves. This target is significantly higher than the projections of 270–350 million euros planned for 2025.

However, regarding direct market interventions, this year the Bank of Albania seems to be intervening less, possibly following recommendations made last year by the International Monetary Fund.

“KORÇA BOOM”