The Bank of Albania reports that the strengthening of the lek over recent years is now considered a structural phenomenon, closely linked to improvements in the Albanian economy and rising foreign currency inflows. According to the central bank, the trend isn’t a temporary fluctuation but reflects underlying economic developments. The bank’s annual report highlights the significant role of tourism growth.
Increased tourism has doubled service exports and substantially increased the supply of euros in the domestic market. This growth has driven improvements in Albania’s balance of payments, trade, and financial accounts with foreign entities. As a result of these positive developments, the supply of euros in the domestic market has increased.
Under a floating exchange rate, this has led to the strengthening of the lek. The Bank of Albania stated that this trend is primarily driven by the improvement in Albania’s external economic, trade, and financial balance.
