The strengthening of the local currency in the exchange rate cost foreign currency depositors 22 billion lek in 2025.
According to data from the Bank of Albania, the negative statistical effect of exchange rate changes on the Lek equivalent of foreign currency deposits was again considerable last year.
However, the slowdown in the strengthening of the Lek caused the negative statistical effect of the exchange rate on foreign currency deposits to be reduced, compared to the level of 43 billion Lek in 2024.
Bank deposits continued to grow rapidly during 2025, with the largest increase recorded during the second half of the year.
During 2025, deposits expanded by about 9.1% (152 billion lek) and at the end of December they reached about 1.84 trillion lek.
Most of the growth was recorded during the months of January, December and especially during the month of August, which is characterized by significant seasonal inflows from tourism.
By currency, the annual growth for deposits in Lek was 11.5%, while for those in foreign currency 6.9%. Deposits in Lek increased by about 90 billion Lek, a stronger increase than that of deposits in foreign currency. If corrected for the statistical effect of exchange rate changes, the annual growth of total deposits would be 10.4% and that of deposits in foreign currency would be 9%.
Time deposits expanded by about 8.1% in annual terms and continued to make a significant contribution to the growth of total deposits. While current accounts increased by 11.2% compared to a year earlier.
The average Euro-Lek exchange rate fell for the fifth consecutive year in 2025 and hit a new historical low. According to statistics from the Bank of Albania, the Euro was exchanged on average last year for 97.85 Lekë, the lowest level ever recorded. However, the rate of decline in 2025 was significantly lower compared to the previous two years.
For 2025, the official average Euro-Lek exchange rate fell by 2.8%, from 7.4% in 2024 and 8.6% in 2023.
The average exchange rate of the Euro to the Lek has been continuously declining since 2013, excluding the year of the pandemic, 2020, a year in which most economic indicators suffered significant deviations, due to the impact of restrictive measures.
The downward trend in the Euro-Lek exchange rate is continuing this year, marking new historical records below the level of 95.5 Lek.
Since the beginning of the year, the Euro has depreciated by 1.4%, while on an annual basis the decline of the European currency has reached 2.8%. This trend translates into a further decline in the value in Lek of deposits in the European currency. /E.Sh. Monitor
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