FLASH
Shkruar nga Pamfleti
The euro has recorded another devaluation today in the domestic foreign exchange market, falling below 95 lekë for the first time. According to the official exchange rate of the Bank of Albania, one euro was exchanged today for 94.96 lekë, or -0.09 lekë less than the day before.
For the period from January 1 to June 12, the euro was exchanged on average at 95.95 lekë, a decrease of 1.4% compared to 97.3 lekë for 2025.
While the decline of the common currency has begun since 2016, the depreciation has been strongest since 2023.
In 2015, one euro was exchanged for an average of 139.7 lekë, while the common currency had fluctuated between 138-140 lekë for six consecutive years.
In 2016, the euro showed the first signs of decline, which at the time experts linked to two factors. First, the massive cultivation of cannabis in the country, and second, the redirection of investments and part of this money flow from illegal trade towards construction.
The euro began to gradually decline, reaching almost 119 lek in 2022.
By 2023, the decline was even stronger, with the common currency depreciating by 10 lek within the year, the largest annual decline in history, falling to 108.75 lek. The depreciation was also at a high rate in 2024, with -8.1 lek. In 2025 and the first part of 2026, the depreciation of the euro continued, although at a slower pace (see chart).
Compared to 2015, before the sharp decline began, the common currency has depreciated by almost 44 lek, or 31%.
Market participants claim that the acceleration of the euro's depreciation from 2023 is related to two main factors:
First, construction has taken on a larger scale in recent years, as evidenced by the high level of housing construction permits issued, which reached a record of almost 2 million square meters in 2024.
Construction appears to have been used as a tool for money laundering, given the fact that after 2016, many construction companies entered the market that did not justify their sources of income, a topic that was extensively covered by Monitor in 2018.
This is being officially confirmed. Just today SPAK has cracked down on one of the largest criminal organizations in Albania, issuing security measures for 20 people involved in international cocaine trafficking and money laundering. This structured network secured millions of euros in profits from the sale of narcotics in Europe and then invested them in the Albanian economy, with a special focus on the construction sector.
Through the businessmen and exponents involved, the organization had managed to secure high-value tenders and permits for the construction of luxury towers and resorts, mainly on the country's southern coast. As a result of the action, 15 of the suspects were placed in prison, while 5 others were placed under house arrest, including names operating from abroad or owning companies used as cover. In addition to the arrests, authorities have seized millions of euros in assets based on these investments in new construction and resorts.
The Financial Intelligence Agency has also frequently cited construction in its reports as a high-risk sector where money can be laundered.
Although INSTAT no longer reports the full surface area of construction permits, since for buildings over 7 floors, permits are issued by the National Council of the territory, which does not provide information on surfaces, but only on permits, their pace is expected to be even higher, based on the revenues being collected in the budget from the infrastructure construction tax.
Secondly, another important factor is tourists, who are bringing in more and more foreign currency, as the country has become a tourist destination. The Bank of Albania reported in the balance of payments that in the first three months of the year alone, the spending of foreigners who traveled to Albania totaled 1 billion and 4 million euros, while during 2025, the total spending exceeded 5 billion euros.
Market players claim that it is precisely the combination of these two factors that has contributed to the euro's decline to its lowest historical level in recent years./Monitor
Lini një Përgjigje