The Bank of Albania significantly increased its foreign currency purchases during the second quarter of 2026.

According to data on market interventions, the Central Bank purchased a total of Euro 524 million during the second quarter of this year—a figure 224% higher than that of the same period the previous year.

Of this amount, Euro 143 million was purchased through scheduled auctions aimed at boosting foreign currency reserves, while Euro 381 million was acquired through direct purchases to meet monetary policy and financial stability objectives.

When adding the Euro 139.6 million purchased during the first-quarter auctions, the total value of purchases for the first half of 2026 reached Euro 663.6 million.

If the trend observed in the first half of the year continues through the remainder of the year, foreign currency purchases are likely to set a new record.

The Euro-Lek exchange rate has accelerated its downward trend this year. According to the Bank of Albania's official rate, the Euro is currently trading at 91.65 lek, very close to the all-time low of 91.4 lek recorded in September. Since the beginning of the year, the Euro has depreciated by 5.3%, while the year-on-year decline is roughly of the same magnitude.

Bank of Albania statistics also showed a significant improvement in the Balance of Payments during the first half of this year. For the first six months, the current account deficit narrowed, totaling Euro 361 million—a 40.6% decrease compared to the same period last year. The current account deficit for the six-month period also reached its lowest level since 2018. The reduction in the deficit was driven primarily by an increase in service exports and remittances.

A strong rise in foreign direct investment appears to have further impacted the overall balance. Data from the Bank of Albania show that in the second quarter of 2026, the value of foreign direct investment reached Euro 741 million, an 86% increase compared to the same period the previous year.

This growth was significantly influenced by inflows linked to a major development project in the real estate sector. For the entire first half of the year, the total value of foreign direct investment reached Euro 1.144 billion, a 50% increase compared to the same period last year.

In response to increased pressure on the Euro exchange rate, the Bank of Albania has stepped up its foreign currency purchases.