The fall of the Euro does not stop even in September, the exchange rate towards the limit of 92 lek

The Euro/Lek exchange rate is not stopping its decline even in the first days of September. According to the official exchange rate of the Bank of Albania, the Euro was exchanged today for 92.16 Lekë, the lowest level ever recorded.

Since the beginning of this year, the Euro exchange rate has fallen by 4.8%, while on an annual basis the decline has reached 5.8%.

The year 2026 is further deepening a long-term downward trend in the exchange rate. In the last decade, the Euro-Lek exchange rate has fallen by 27%.

According to exchange agents, the supply of foreign currency in the market remains high, following a tourist season that appears to have been abundant in incoming foreign currency flows.

Given that the Euro exchange rate remains the reference for exchange with other currencies, the Lek is staying close to its strongest historical positions against most major currencies.

On an annual basis, the Lek has strengthened by 5.3% against the US Dollar, by 4.6% against the British Pound, and by 6.4% against the Swiss Franc.

The downward pressure on the Euro and other foreign currencies this year appears to have strengthened significantly, to the extent that even the Bank of Albania's continuous interventions in the foreign exchange market have a weaker impact on the exchange rate performance.

The figures for the Bank of Albania's interventions have only been made public until the end of the first quarter, when approximately 140 million euros were purchased, the highest figure ever recorded. Figures for the subsequent period have not yet been made public, but based on indirect estimates, market analysts believe that purchases have increased further compared to the same periods in the previous two years. Earlier, in the period 2024-2025, the Central Bank had withdrawn more than two billion euros from the market, in its efforts to slow the strengthening of the local currency.

The Bank of Albania explains the strengthening of the Lek mainly with the continuous improvement of the Balance of Payments. Statistics showed that for the first quarter of the year the current account deficit shrank to 228 million euros, down 28% compared to the same period a year earlier. Meanwhile, foreign direct investments reached the value of 404 million euros, marking a new historical record for this period of the year. They increased by 11.6% compared to the same period last year.

According to the Central Bank, the combined analysis of foreign exchange market and balance of payments data up to the first quarter reconfirmed the close relationship between trading volumes in the foreign exchange market and flows of foreign exchange of goods and services.

On the other hand, the policy followed by the Albanian government in recent years, with large budget surpluses for most of the year, is believed to be exerting an additional influence on the strengthening of the Lek. For the first 7 months of 2027, the budget was in surplus at the value of 50.7 billion Lek, an increase of 60% compared to the same period a year earlier.

Beyond these factors, the continued strengthening of the Lek is risking becoming a problem for the Albanian economy, due to the negative effect it is having on the exporting sectors of goods and services and in general on all productive sectors of the economy, which face increasing competition from imports that the strong Lek is making cheaper./ Monitor