The Euro/Lek exchange rate has dropped below the 92 lek mark for the first time today, touching a new historical minimum. According to the official exchange rate of the Bank of Albania, the Euro was exchanged today for 91.94 lek.
The lek is continuing a long-term downward cycle, which accelerated further during 2026.
Since the beginning of the calendar year, the Euro has depreciated by 5%, while on an annual basis the decline of the European currency has reached 5.3%.
Foreign exchange experts say the extended summer season has further increased the already abundant supply of the Euro in the foreign exchange market, while demand for the European currency remains tepid. The depreciation of the Euro is causing it to be partially substituted in some domestic economic transactions, including real estate sales.
Bank of Albania statistics show a significant improvement in the Balance of Payments for this year, a factor that can largely explain the further depreciation of the Euro.
According to data from the Bank of Albania, for the first six months of 2026, the current account deficit decreased, with a total value of 361 million euros or 40.6% less compared to the same period last year. The current account deficit for the first six months also marked the lowest level since 2018. The decrease in the deficit came mainly from the increase in exports of services and remittances.
The balance in trade in services was positive at approximately 1.79 billion euros, up 12.9% compared to the first half of last year. More than half of the contribution to the services sector came from tourism, which in the first 6 months of the year brought the economy net income worth 957 million euros, up 20% compared to the first half of last year.
On the other hand, an additional effect seems to have been provided by the strong growth of foreign direct investments. Bank of Albania data show that for the second quarter of 2025, the value of foreign direct investments reached 741 million euros, an increase of 86% compared to the same period a year earlier.
This increase was significantly influenced by flows related to a significant development project in the real estate sector. The Central Bank is most likely referring to the investment project in the Zvërnec area.
For the entire first 6 months, the total value of foreign direct investments reached 1.144 billion euros, an increase of 50% compared to the same period last year.
What is increasingly noticeable in the post-pandemic period is the growing concentration of foreign direct investment in the real estate sector.
These currency bubbles are bringing about an accelerated depreciation of the Euro against the Lek./Monitor