The domestic currency Lek has closed the year 2023 with a significant appreciation compared to the previous year.

According to the official exchange rate of the Bank of Albania, the Euro was exchanged on Friday (the last day the official exchange rate was published for this year) at the level of Lek 103.88. Compared to the last day of 2022, the Euro-Lek exchange rate has fallen by 9.1%, Monitor reported.

The exchange rate with most of the other main currencies also showed a downward trend.

The exchange rate of the US Dollar with the Lek ended the year at the level of Lek 93.94, down by 12.2% compared to the end of last year. The exchange rate of the British Pound with the Lek closed the year at the value of Lek 119.47, down by 7.3% compared to the end of last year.

The Swiss franc ended the year at the value of Lek 112.1, down 3.5% compared to a year ago.

The Lek has had its best exchange rate year for the past year. The overvaluation against the Euro touched the level of 14% during the summer, when the exchange rate simultaneously marked the lowest historical level, with Lek 100.49. Subsequently, the exchange rate had an upward correction but maintained the annual appreciation trend of the Lek.

After stabilizing near the level of Lek 106 at the end of the summer season, during November the Lek strengthened again, reaching the limit of Lek 101, mainly as a result of the income from the sale of electricity. In December, the Euro regained some ground, due to the increase in the supply of Lek in the market, as a result of the strong increase in public spending in the last weeks of the year.

The appreciation of the Lek this year is especially the result of the significant improvement of the Balance of Payments, but also of a very restrictive fiscal policy followed by the Albanian Government.