TIRANA, July 8 – Central Bank Governor Gent Sejko said on Wednesday that the Albanian Lek (ALL) has continued to strengthen, attributing the trend to structural improvements in the country’s external balance and increased foreign currency inflows.
Speaking before the Parliamentary Committee on Citizens’ Initiatives, Cooperation and Institutional Oversight, Sejko said Albania’s external balance improved significantly in 2025. He linked this development to rising revenues from tourism, remittances and foreign direct investment, mainly in the real estate sector.
Meanwhile, the governor said that Albania’s free exchange rate regime and economic growth of around 3.8% support the appreciation of the national currency. He added that other European countries experienced similar trends during their integration process with the European Union.
Sejko stressed that the stronger Lek has helped contain inflation, which remains the main objective of the Bank of Albania.
However, he acknowledged that the currency’s appreciation creates challenges for exporters and citizens or businesses that receive income in euros. At the same time, he said that households and companies earning in Lek benefit from lower price pressures.
The governor also warned that a fixed exchange rate regime would harm the economy. According to him, inflation could have reached around 6% instead of 2.6%, while loan instalments, non-performing loans, unemployment and other macroeconomic indicators would have worsened.
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