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11:44 POLITICS

"He doesn't know how to respect those who elected him, to hand over his mandate"/ Balla "challenges" the MP

The Chairman of the Socialist Party Parliamentary Group, T...

Euro exchange rate in Albania/ What is happening?

2026-06-29 10:11:00, Ekonomi CNA

When citizens see that the euro drops a few points in a few days, the first reaction is practical: how much do I lose in exchange, how much less do I pay for the loan, or how much does my income from abroad depreciate? But behind this daily question lies a larger economic debate. The euro exchange rate in Albania is not simply a number on the exchange tables. It is an indicator that affects families, businesses, exporters, importers and the country's economic climate itself.

This is where the problem begins. Whenever the euro moves sharply, two narratives immediately emerge: one portrays it as an economic success, the other as a signal of market distortion. The truth is usually less comfortable and more complicated. There are real factors pushing the exchange rate, but there are also legitimate questions about how the foreign exchange market works in Albania, how transparent it is, and who benefits most from these movements.

Economy today/ What's moving?
June 23, 12:51

The euro exchange rate in Albania does not move randomly.

In theory, the exchange rate is determined by supply and demand. When more euros are supplied to the market than are demanded, the euro weakens against the lek. When demand for the euro increases, the European currency strengthens. This is the basic scheme. But in practice, in Albania this equation is strongly influenced by several specific sources of foreign exchange inflows.

First comes tourism. In the summer months, the inflow of foreign currency increases significantly. Hotels, bars, restaurants, rental apartments and a good part of the informal economy are fed by euro cash. This flow increases the supply in the market and creates pressure for the euro to fall. This is why the lek often strengthens during the tourist season.

Second are remittances. The money that comes from emigrants remains a strong pillar for many Albanian families. When these inflows are high, especially during holidays or seasons, the market is flooded with euros again. For the family that receives them, this is a help. For the exchange rate, it is additional downward pressure.

Weak Euro/Exports Under Pressure
June 23, 1:37 PM

Third, there are foreign investments and the real estate market. This is where the debate becomes most heated. When large amounts of euros circulate in the market from property purchases, construction projects or investments with origins that are not always clear to the public, the question is not only economic. It is also institutional. How clean is this currency? How much is it controlled? And how much does it affect the deformation of the real exchange rate?/CNA