The strengthening of the Albanian lek against the euro in the exchange rate market is a result of the country's economic growth and substantial euro inflows. This explanation was provided by Governor Gent Sejko as he addressed questions about the depreciation of foreign currencies.
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| Gent Sejko in his office while speaking on an online interview (archive) |
Economic Growth and Currency Dynamics
The appreciation of the lek against both the euro and the dollar has been driven by the increase in exports and tourism. Governor Gent Sejko clarified this in a meeting of the Economic Commission, responding to inquiries from several deputies regarding the devaluation of foreign currencies.
"The strengthening of the lek and the exchange rate has resulted from structural improvements and the betterment of Albania's trade balance due to economic growth, particularly in tourism and the improvement of trade exports based on tourism," stated Sejko.
Dual Impacts on the Market
The depreciation of the euro has had mixed effects on the Albanian market. It has benefited importers and the government in terms of foreign debt repayments while posing challenges for exporters and employees receiving salaries in euros.
"Albania has chosen this regime, which is recommended by the International Monetary Fund, the World Bank, and the European Commission, to manage crises," explained the governor.
Historical Exchange Rate Levels
Currently, the euro is being exchanged at around 100 lek, while the dollar has dropped to 92 lek. These rates are among the lowest historical levels in the Albanian foreign exchange market.
This trend reflects the broader economic landscape of Albania, highlighting the significant impact of tourism and export growth on the country's currency valuation. As Albania continues to integrate its economic policies with international standards, the fluctuations in exchange rates are indicative of the broader structural changes within the national economy.