Euro-Lek Exchange Rate Hits Record Low as Albania's Strong Economy Takes a Toll

The Euro-Lek exchange rate has been declining steadily since the beginning of this year, and September is no exception. According to the Bank of Albania's official exchange rates, the Euro was exchanged for 92.16 Lekë on September 1st, marking a new record low.

This decline in the Euro-Lek exchange rate has been ongoing for several years, with a total drop of 27% over the last decade. The supply of foreign currency in the market remains high due to an abundant tourist season, which has led to increased inflows of foreign exchange.

The Albanian government's policy of large budget surpluses is also believed to be contributing to the strengthening of the Lek. For the first 7 months of this year, the budget was in surplus at 50.7 billion Lekë, an increase of 60% compared to the same period last year.

The continued strengthening of the Lek has raised concerns about its impact on the Albanian economy, particularly for exporting sectors and industries that face increasing competition from cheaper imports.