The Albanian lek has fallen against the euro and other major currencies over the last month, following months of appreciation that concerned exporters. 

The lek rose to a peak of ALL100.49 to the euro on July 20, but did not break through the ALL100 to the lek mark. Instead, it has mainly fallen over the last month, and stood at ALL109.67 to the euro as of August 28, central bank data showed. This is close to the level the ALL/EUR exchange rate was at in late May. 

The reasons for the decline are unclear, as the lek was previously forecast to rise further against the euro during the summer, when hundreds of thousands of foreign tourists and expatriate Albanians arrive in the country. 

The lek has repeatedly broken new records against the euro after steadily strengthening since late 2022. 

The hike in the value of the lek has been attributed to several factors, including the large amount of foreign currency on the market, resulting from the rise in tourism revenue and an increase in remittances.

The strong lek has made imports more affordable, which has helped keep inflation levels relatively low at a time when inflation has soared across Europe. 

However, the strength of the lek has caused difficulties for export-oriented businesses in the country.

The lek has made similar declines against other major currencies, namely the US dollar (USD) and the British pound (GBP).

ALL/USD exchange rates in 2023. Source: Bank of Albania 

 

ALL/GBP exchange rates in 2023. Source: Bank of Albania