Euro in free fall, lek 'stronger' than ever - Mecca: Seasonal effect, additional supply from tourism and real estate
The exchange rate of the lek against the euro is increasingly reflecting seasonal effects. The increase in the flow of tourists has increased the supply of foreign currency in the market, putting further pressure on the common currency.
According to the official exchange rate of the Bank of Albania, one lek was exchanged today for 93.78 lek, depreciating by 0.11 lek compared to the previous day.
Financial markets expert Elvin Meka told SCAN TV that this is the lowest historical level ever recorded. Compared to the beginning of this year, the common currency has depreciated by 3.04%, or almost 3 lekë. According to him, these are seasonal effects from tourism and the real estate market.
"We are not facing an unexpected development. As predicted at the end of 2025, if the factors did not change, we would have this devaluation of the euro. In the first half of the year and early July, we have a devaluation of the euro due to seasonal factors and we have a uniform decline in the euro just like a year ago. A major factor, that economic growth, tourism, real estate and inflationary money give effect. We may have some kind of acceleration. After the latest news, it may be a signal of the end of the period, closure of funds from suspicious transactions, funds related to real estate activity," says Meka.
But what are the expectations for the euro and what does expert Meka emphasize?
"It will create additional supply that this month, July, will bring, where the strongest decline of the euro in relation to the Albanian currency has been noticed," says Meka.
The national currency has been triumphing against foreign currencies for 5 years. But even though this depreciation has costs for exporters and families whose income is in euros, the Bank of Albania says that if the exchange rate were to be fixed, the negative consequences for the economy would be numerous.
According to BoA analyses, this trend has been supported by increased tourism revenues, remittances, foreign direct investments, labor income, and an improvement in the external position of the economy. More foreign exchange has entered the economy and confidence in the Lek has increased.
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