TIRANA, Albania — October 22, 2026 — The euro has fallen to its lowest level ever recorded against the Albanian lek, reaching 90.64 lek, according to the official exchange rate published by the Bank of Albania.
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Tourism and foreign investment increase euro supply
Foreign exchange market experts attribute the euro’s continued decline primarily to changes in supply and demand. Inflows of euros remain strong, supported particularly by tourism and foreign investment, while domestic demand for the currency has weakened.
The trend is also reflected in parts of the property market, where prices are increasingly being quoted in lek rather than euros. Lending to individuals is likewise becoming more oriented toward the national currency, reducing demand for euros to repay loans.
Notably, the recent weeks of protests and political tensions in Albania have not triggered the increase in domestic euro demand that might traditionally be expected during periods of uncertainty.
Foreign investment rises by 50%
According to the Bank of Albania, changes in the country’s external economic position help explain the euro’s decline.
During the first half of 2026, Albania’s current account deficit fell by almost 41% compared with the same period last year, reaching its lowest level since 2018. The improvement was driven mainly by increased exports of services and remittances.
Foreign direct investment also contributed to the country’s balance of payments. Total foreign direct investment reached €1.144 billion in the first six months of 2026, an increase of 50% year on year.
Central bank buys €663.6 million to manage currency pressures
As the lek continues to strengthen, the Bank of Albania has increased its foreign currency purchases.
The central bank bought €524 million during the second quarter of 2026, a 224% increase compared with the same period a year earlier. Including the €139.6 million purchased during the first quarter, total foreign currency purchases reached €663.6 million in the first half of the year.
The purchases follow substantial interventions in the domestic foreign exchange market during 2024 and 2025, when the central bank bought more than €2 billion. In 2025 alone, it purchased €1.027 billion.
What does a weaker euro mean for Albania?
A declining euro can benefit households and businesses that purchase imported goods or repay euro-denominated obligations using lek. However, it can also reduce the lek value of income earned in euros, including remittances and tourism revenues when converted into the local currency.
For exporters and households receiving payments from abroad, the effects can therefore be mixed.
With the euro trading at a historic low of 90.64 lek, the key question is whether strong foreign currency inflows and weaker domestic demand will continue to put pressure on the exchange rate in the months ahead.
Source: Bank of Albania data and market analysis provided in the original report.