Since the beginning of the year, the euro has depreciated by 1.5%, while on an annual basis the European currency has fallen by approximately 3% against the lek.

According to foreign exchange market agents, the start of the summer season is expected to increase pressure on the euro due to higher foreign currency inflows generated by tourism. As a result, the downward trend is likely to continue, even though the central bank regularly intervenes in the market to slow the euro’s depreciation.

Official statistics show that last year the Bank of Albania purchased more than €1 billion to increase its foreign exchange reserves, with much of the intervention aimed at limiting the appreciation of the Albanian lek. The amount of foreign currency purchased increased by 10% compared with the previous year.

Overall, during the 2024–2025 period, the central bank bought approximately €2 billion in the foreign exchange market. However, these interventions have only managed to slow, rather than stop, the decline of the euro.

So far, even the rise in inflation for imported products, particularly fuel, does not appear to have significantly increased demand for foreign currency or eased the depreciation pressures on the euro.

This situation indicates that foreign currency inflows into the Albanian economy remain strong. These inflows are mainly linked to tourism, foreign investments in real estate, and informal financial inflows, which continue to be perceived by the public as an important factor, even though their actual impact cannot be precisely measured.