Financial markets continue to be characterised by ample liquidity, low interest rates and positive lending conditions, Bank of Albania Governor Gent Sejko said on Wednesday.

“This trend has been reflected in the rapid and broad-based expansion of credit to the private sector,” Sejko said, noting that lending continued to support business investment, home purchases and household consumption.

Private-sector lending is increasingly shifting towards Albania’s national currency, lek, while portfolio quality indicators continue to improve, he said.

On inflation, updated Bank of Albania forecasts suggest price growth will increase further over the next two quarters, but the rise is expected to be moderate and temporary.

Inflation is projected to gradually return towards the central bank’s target from mid-next year.

Economic activity is also expected to continue expanding at a steady pace, close to potential, supported by private-sector balance sheets, favourable financial conditions, tourism revenues and positive expectations.

The central bank said geopolitical tensions in the Middle East remained a key source of uncertainty, potentially affecting commodity prices and, in turn, inflation and economic growth.

The Bank of Albania’s Supervisory Council decided on Wednesday to keep its overnight deposit rate unchanged at 1.5% and its overnight lending rate at 3.5%.

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The average USD/lek exchange rate stood at 82.0 lek per dollar in the second quarter, compared with 82.3 lek in the first quarter, the central bank said. Year-on-year, the lek’s appreciation against the dollar slowed to 3.3% in June, from a peak of around 14% in the first two months of the year.

During the first three weeks of July, the USD/lek exchange rate fluctuated around an average of 82.1 leks, while annual appreciation of Albania’s national currency slowed further to 1.8%.

The Bank of Albania said the foreign exchange market continued to operate under normal trading conditions, with limited fluctuations in the exchange rate. However, the exchange-rate bias indicator, which measures the direction of daily currency movements, increased during 2026 after a period of relative calm in the second half of last year.

The central bank said the indicator pointed to stronger pressures on the exchange rate and could signal a shift in the expectations of foreign exchange market participants.

Despite these developments, the foreign exchange market continues to operate within normal parameters, while exchange-rate movements remain an important indicator of economic and financial developments in Albania.

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The euro dropped by 0.09 lekë to 92.92 lekë, the British pound fell 0.22 lekë to 108.70 lekë, and the Swiss franc slipped 0.01 lekë to 99.26 lekë. Meanwhile, the US dollar rose 0.01 lekë to 80.59 lekë.

Exchange rate shifts in the local market follow international trends and domestic supply and demand. This summer, high tourist spending and remittances are driving strong foreign currency inflows.

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Main Currency         Albanian Lek per Foreign Currency Unit

US Dollar       USD    80.59 +0.01

Euro   EUR    92.92 -0.09

Great Britain Pound           GBP    108.70           -0.22

Swiss Franc  CHF     99.26 -0.01

The Bank of Albania notes that these exchange rate shifts reflect global market trends and local factors, such as high foreign currency inflow from tourism, remittances, and trade.

Main Currency         Albanian Lek per Foreign Currency Unit

US Dollar       USD    81.03 -0.25

Euro   EUR    93.36 -0.17

Great Britain Pound           GBP    109.00           -0.33

Swiss Franc  CHF     100.26           -0.33

According to the official exchange rate of the Bank of Albania, the euro is exchanged for 96.45 lekë or 0.09 lekë less than on Friday. The USD depreciated by 0.53 lekë and is exchanged for 81.32 lekë.

The British pound depreciated against the Lek by 0.51 lekë and is exchanged for 110.57 lekë. The Swiss franc gained ground slightly against the domestic currency by 0.02 lekë, being quoted at the level of 105.25 lekë.

Market analysts attribute foreign exchange fluctuations to international stock market performance, compounded by domestic supply and demand dynamics.

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Main Currency        Albanian Lek per Foreign Currency Unit

US Dollar       USD    81.32 -0.53

Euro   EUR    96.45 -0.09

Great Britain Pound          GBP    110.57           -0.51

Swiss Franc CHF     105.25           +0.02

According to the official exchange rate of the Bank of Albania, the US dollar on Monday depreciated by 0.08 lekë, compared to the weekend, while the European currency decreased by 0.01 lekë.

The US dollar was exchanged for 83.01 lekë, while the euro was exchanged for 96.51 lekë.

Meanwhile, the British pound was exchanged for 111.27 lekë, or 0.15 lekë less, and the Swiss franc was exchanged for 103.92 lekë, or 0.24 lekë more than at the weekend. /r.e/a.f/p.s./

Meanwhile, the US dollar strengthened by 0.18 lekë and is exchanged at 81.93 lekë.

According to the official exchange rate of the Bank of Albania, the British pound gained ground by 0.15 lekë and is exchanged at 110.64 lekë.

The Swiss franc is exchanged at 103.85 lekë or 0.12 lekë less than yesterday.

The Bank of Albania evaluates the foreign exchange rate as stable and within its expectations. According to the BoA, the fluctuations reflect the performance of supply and demand, but also the trend on international stock exchanges. /p.s./

Main Currency         Albanian Lek per Foreign Currency Unit

US Dollar       USD    81.93 +0.18

Euro   EUR    96.46 0.00

Great Britain Pound           GBP    110.64           +0.15

Swiss Franc  CHF     103.85           -0.12

During the first half of 2025, the dollar followed a similar downward trend to the euro, weakening significantly against the local currency.

In June, one U.S. dollar exchanged for an average of 85.1 lek, marking the lowest six-month average since 2010.

The lek’s strength was influenced by the weakening of the dollar in international markets, amid political developments in the United States. The Bank of Albania said it continued to intervene in the foreign exchange market through currency purchase auctions to bolster its foreign reserves, while maintaining market stability.

Globally, the U.S. dollar has also depreciated against the euro and the currencies of key trading partners, reflecting market concerns over mounting pressure from the U.S. administration on the Federal Reserve to ease monetary policy.

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According to the official exchange rate provided by the Bank of Albania, the Europe’s single currency Euro was traded at 97.93 lek on Monday, recording a decline of 0.12 lek compared to a day ago and also marking the first time the common currency has fallen below the 98 lek threshold.

The U.S. dollar also depreciated, trading at 85.66 lek, down by 0.21 lek compared to a day ago. Other major currencies, including the British pound and Swiss franc, recorded similar losses against the national currency.

The weakening of the euro benefits borrowers with loans in foreign currencies, while negatively impacting the export sector by reducing their revenue when expressed in the local currency.

The British pound and the Swiss franc have also lost ground against the lek. The British pound has weakened by 0.21 lek to 116.27 lek, while the Swiss franc has dropped by 0.22 lek to 104.51 lek.

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The Bank of Albania said in its latest Financial Stability Report that the Lek appreciation was evident in the months following the summer tourist season driven by increased inflows of foreign currencies due to tourism.

The euro hit record low in November 2024 when it was traded at 98.2 Lek.

In the off-season period, the Lek strengthened by around 4% year-on-year against Europe’s single currency, the Euro, down by 6% and 11% compared to six months and a year ago respectively.

The U.S. Dollar has also recorded similar performance against the Euro.

In September 2024, one Dollar was averagely traded at 89.4 Lek, the lowest average rate in the last 15 years. By the end of last year, driven by the political developments in the United States, the Dollar gradually strengthened to be exchanged at 93.9  lek in December.

Albania’s central bank has kept intervening in the country’s domestic exchange market by purchasing foreign currencies in a bid to increase foreign exchange reserve and slow the pace of appreciation of the local currency.

This year, the exchange rate continues to reflect stability with slight fluctuations of the Lek against foreign currencies.

Today, one U.S. Dollar is traded at 86.96 lek and one euro at 98.75 Lek.

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