Recent developments influencing the Albanian Lek (ALL) include:
- Tourism Surge: Increased foreign currency inflows during the peak tourist season have bolstered the Lek. (ocnal.com)
- Fiscal Policy: A substantial budget surplus, reaching over 39 billion Lek by May, has reduced domestic currency supply, supporting the Lek's strength. (ocnal.com)
- Central Bank Interventions: The Bank of Albania has resumed foreign currency purchases since May to prevent excessive Lek appreciation, aiming to maintain inflation below the 3% target. (ocnal.com)
- Interest Rate Adjustment: A recent base interest rate cut from 2.75% to 2.5% by the Bank of Albania, intended to curb imported inflation, has had limited impact on reversing the Lek's appreciation due to weak monetary policy transmission. (ocnal.com)
These factors collectively contribute to the Lek's current exchange rate dynamics.