The total government debt in foreign currency has decreased over the past year.

At the end of September 2024, foreign currency debt accounted for 43% of the total government debt, a decrease of 3.51 percentage points compared to the previous six months. According to the latest de-euroization report, the majority of the debt is in euros, accounting for almost 78% of the value of foreign currency debt.

During December 2024, the exchange rate of the local currency continued to appreciate, but at much lower rates than a year earlier. Compared to the European currency euro, the domestic currency Lek appreciated by 2.04% during this period (4.4% in annual terms), reflecting the continued strong inflows of foreign currency into the economy as a result of tourism revenues, remittances, and foreign direct investment (which have improved the trade balance).

The decline in the share of foreign currency debt in 2024 reflects the appreciation of the lek exchange rate, with one euro costing 99.35 lek at the end of September 2024, compared to 103.57 lek at the end of March 2024. In the last decade, the government's foreign currency debt has not exceeded 55% of its total debt.

In the second half of the year, the interventions of the Bank of Albania in the foreign exchange market were more pronounced in the period September-October, and were focused on maintaining the gradualness of movements in the exchange rate.

At the end of December 2024, a decrease in the weight of debt securities (securities) with maturities of 3, 6, and 12 months and an increase in the weight of securities with maturities longer than 12 months (2, 3, 5, and 7-year bonds) was observed. An increase in the weight of securities with long-term maturity (15-year bonds) was also observed.