Albanian savers are increasingly favoring the local currency, as evidenced by recent trends in banking sector data. According to figures from the Bank of Albania, the volume of deposits held in the lek saw a year-on-year increase of 13.5%. While deposits in foreign currencies also rose by 10.5%, the growth in the local currency has propelled the lek to constitute over 50% of total deposits—a milestone not seen in the last decade.
This discernible shift in savings behavior appears correlated with the depreciation of the euro. Data indicates a notable acceleration in local currency holdings alongside a decline in euro deposits. The robust growth in lek deposits suggests deeper financial intermediation by commercial banks and reflects the expanding money supply within the local currency framework.
Economic agents appear to be maintaining or channeling their savings through the formal banking system, favoring the stability or accessibility offered by the local currency. The observed pattern suggests that changes in the exchange rate environment, particularly concerning the euro, are influencing consumer and corporate decisions regarding where to place their liquid savings. Overall, the data points to a strengthening reliance on the lek within the nation’s financial architecture.
Topics: #lek #deposits #euro
