What is the Currency of Albania? A Comprehensive Guide for 2025

Albania, a vibrant Balkan nation nestled along the Adriatic and Ionian Seas, has become an increasingly popular destination for tourists, expats, and investors. As you plan your trip or consider business opportunities in this Mediterranean gem, understanding the local currency is essential for seamless transactions, budgeting, and navigating daily life. This comprehensive guide explores the currency of Albania, its history, practical usage, exchange options, and tips for travelers and residents in 2025. Whether you’re exploring the bustling markets of Tirana, relaxing on the beaches of Sarandë, or investing in property with Albanian Century, this article provides all the financial insights you need.

The Official Currency of Albania: The Albanian Lek

The official currency of Albania is the Albanian Lek (plural: Lekë), abbreviated with the symbol L or ALL (ISO 4217 code). The Lek is subdivided into 100 qindarka, though qindarka coins are rarely used today due to their low value. Pronounced “lek,” the currency is issued and regulated by the Bank of Albania (Banka e Shqipërisë), the country’s central bank, established in 1925. The Lek is used for all transactions within Albania, from daily purchases like coffee and groceries to larger expenses such as rent, dining, and transportation.

Key Facts About the Albanian Lek

• Symbol: L or ALL
• Subunit: Qindarka (1 Lek = 100 qindarka)
• Denominations:
  • Coins: 1, 5, 10, 20, 50, 100 Lekë
  • Banknotes: 200, 500, 1,000, 2,000, 5,000 Lekë (a 10,000 Lek note exists but is rare)
• Exchange Rate (August 2025): Approximately 1 USD = 90 ALL, 1 EUR = 100 ALL, 1 GBP = 115 ALL (rates fluctuate; check real-time sources before exchanging).
• Usage: Exclusive legal tender in Albania; foreign currencies like USD or EUR are not accepted for everyday transactions.

History of the Albanian Lek

The Albanian Lek has a rich history tied to the nation’s economic and political evolution:

• Origin: Introduced in 1926 under King Zog I, the Lek replaced the Ottoman and Austro-Hungarian currencies used during foreign occupations. Its name derives from Lekë Dukagjini, a 15th-century Albanian noble, or possibly Alexander the Great (Leka i Madh in Albanian), though the exact origin is debated.
• Early Years: Initially pegged to the Italian lira and gold, the Lek underwent several revaluations due to wartime inflation and political changes.
• Communist Era (1945–1991): During Albania’s communist period, the Lek was tightly controlled, with limited convertibility. A new Lek was introduced in 1965 at a rate of 100 old Lekë to 1 new Lek.
• Post-Communist Transition: After the fall of communism in 1991, Albania adopted a floating exchange rate. The Lek stabilized as the economy transitioned to a market-based system, supported by reforms and foreign investment.
• Modern Era: Today, the Lek is a stable currency, though its value fluctuates based on global markets, tourism, and remittances (which account for 8.3% of GDP in 2024). New banknote designs were introduced in 2019–2022, featuring enhanced security and cultural motifs like the Albanian eagle and historical figures.

Using the Albanian Lek in 2025

Everyday Transactions

The Albanian Lek is the only accepted currency for daily purchases in shops, restaurants, markets, and public transport. While some tourist-heavy businesses (e.g., hotels or car rentals) may quote prices in euros for convenience, payments are typically required in Lekë. Cash is king in Albania, especially in rural areas and smaller establishments, though card payments are increasingly common in urban centers like Tirana, Durrës, and Vlorë.

• Cash Usage: Carry small denominations (50, 100, 200 Lekë) for markets, taxis, and small cafés, as change for large notes (2,000 or 5,000 Lekë) may be limited.
• Card Payments: Major cities accept Visa and Mastercard at hotels, restaurants, and supermarkets. However, smaller towns like Gjirokastër or Berat may rely heavily on cash. Contactless payments are growing, with 60% of transactions in Tirana being card-based in 2024.
• ATMs: Widely available in cities, ATMs dispense Lekë and often accept foreign cards (Visa, Mastercard, Maestro). Banks like Credins, Raiffeisen, and BKT charge minimal fees (200–500 ALL per withdrawal for foreign cards).

Exchange Options

Since foreign currencies are not accepted for most transactions, you’ll need to exchange money or withdraw Lekë upon arrival. Here’s how to manage currency exchange in Albania:

• Currency Exchange Offices: Found in airports, city centers, and tourist areas, these offer competitive rates but may charge commissions (1–3%). Always check the buy/sell spread and avoid unofficial exchangers to prevent scams.
• Banks: Major banks like Banka e Shqipërisë, Credins, and Raiffeisen provide reliable exchange services with lower fees. Banks in Tirana’s Blloku district or Durrës’s promenade are convenient for tourists.
• Airports: Tirana International Airport (Nënë Tereza) has exchange booths, but rates are less favorable (5–10% higher fees). Exchange only small amounts upon arrival and use city-based options for better deals.
• ATMs: The most convenient option for accessing Lekë. Withdrawals in local currency avoid dynamic currency conversion fees. Check with your home bank for international withdrawal fees (typically $2–$5 per transaction).
• Exchange Rates (August 2025):
  • 1 USD ≈ 90 ALL
  • 1 EUR ≈ 100 ALL
  • 1 GBP ≈ 115 ALL
  • Rates fluctuate daily; use apps like XE.com or check with local banks for real-time quotes.

Digital and Mobile Payments

Digital payments are gaining traction, especially in Tirana. Apps like BKT Smart and Raiffeisen ON allow locals and expats to make mobile payments or transfers in Lekë. However, international apps like PayPal or Revolut are less common, and Apple Pay/Google Pay are not widely supported. For tourists, carrying a mix of cash and cards is recommended.

Cost of Living and Currency Value

Albania’s cost of living is one of the lowest in Europe, approximately 46% lower than the United States and 31.8% lower than Germany in 2025. This affordability enhances the Lek’s purchasing power for visitors. Here’s a snapshot of typical expenses in Lekë:

• Meal at a mid-range restaurant: 800–1,500 ALL (€8–€15)
• Coffee (espresso): 100–200 ALL (€1–€2)
• Public transport (bus in Tirana): 40 ALL (€0.40)
• One-bedroom apartment rental (Tirana city center, monthly): 40,000–75,000 ALL (€400–€750)
• Bottle of local wine: 800–2,000 ALL (€8–€20)
• Beach umbrella rental (Sarandë): 500–1,000 ALL per day (€5–€10)

The Lek’s value makes Albania an attractive destination for budget travelers, digital nomads, and retirees. However, prices in tourist-heavy areas like Sarandë or Vlorë’s Lungomare can be 20–30% higher during peak season (June–August).

Practical Tips for Handling Currency in Albania

1. Exchange Money Wisely:

• 1. Avoid airport exchanges for large sums due to high fees. Use banks or reputable exchange offices in city centers.
  2. Compare rates at multiple locations, as spreads can vary by 2–5%.
  3. Exchange only what you need, as reconverting Lekë to foreign currency may incur losses.

1. Carry Cash for Small Transactions:

   1. Markets, taxis, and small cafés often don’t accept cards. Keep 1,000–2,000 ALL in small denominations handy.
   2. Tipping is not mandatory but appreciated (5–10% in restaurants), typically in cash.

2. Use ATMs Strategically:

   1. Choose ATMs from reputable banks (e.g., BKT, Credins) to avoid skimming risks.
   2. Withdraw larger amounts to minimize transaction fees, but store cash securely.

3. Check Card Compatibility:

   1. Inform your bank of travel plans to avoid card blocks.
   2. Ensure your card supports international withdrawals without excessive fees.

4. Beware of Scams:

   1. Avoid unofficial money changers, especially in tourist areas, as they may offer fake currency or poor rates.
   2. Verify banknotes for security features (e.g., watermarks, holograms) when receiving large sums.

5. Budget for Seasonal Variations:

   1. Prices for rentals and services rise in summer. Plan for 20–30% higher costs in coastal cities during June–August.
   2. Off-season (November–March) offers significant savings, with fewer crowds.

Currency for Travelers and Expats

For Tourists

• Short-Term Needs: Exchange €100–€200 upon arrival for immediate expenses (taxis, meals). Use ATMs for additional Lekë as needed.
• Payment Preferences: Hotels and car rentals may quote prices in euros but require payment in Lekë. Confirm payment terms in advance.
• Budgeting: A daily budget of 5,000–10,000 ALL (€50–€100) covers meals, transport, and attractions for a comfortable trip.

For Expats and Digital Nomads

• Bank Accounts: Expats staying longer than a month can open a local bank account with Credins or Raiffeisen for easier Lek transactions. Required documents include a passport and proof of address.
• Long-Term Rentals: Monthly rents are quoted in Lekë, with contracts often requiring payment via bank transfer. Expect 40,000–75,000 ALL (€400–€750) for a one-bedroom apartment in Tirana.
• Remittances: Many expats rely on remittances or international transfers. Services like Wise or Western Union offer competitive rates for converting USD/EUR to Lekë.

For Investors

• Real Estate: Albania’s property market, with rental yields of 3.0–5.7%, is attractive for investors. Transactions (e.g., purchases, rentals) are conducted in Lekë, though prices may be listed in euros for clarity.
• Business Costs: Commercial rentals in Tirana’s Blloku district cost 1,000–3,000 ALL per m² per month (€10–€30). Budget for taxes and utilities in Lekë.

Albania’s Economic Context and the Lek

Albania’s economy has grown steadily, with a 16.4% increase in GDP per capita over the past five years (2020–2024). The Lek’s stability is supported by tourism (10 million visitors expected in 2025), remittances, and foreign investment. However, Albania is not part of the European Union, and there are no plans to adopt the euro in the near future. The Bank of Albania maintains a floating exchange rate, allowing the Lek to fluctuate based on market conditions. Inflation in 2024 was moderate at 2.5%, ensuring the Lek’s purchasing power remains stable for residents and visitors.

Frequently Asked Questions

• Can I use euros or dollars in Albania? No, only Lekë are accepted for most transactions. Some tourist businesses may quote prices in euros, but payment must be in Lekë.
• Are credit cards widely accepted? Yes, in urban areas like Tirana, Durrës, and Vlorë, but cash is preferred in rural areas and small businesses.
• Where’s the best place to exchange money? Banks and reputable exchange offices in city centers offer the best rates. Avoid airports and unofficial exchangers.
• Is tipping expected? Tipping is not mandatory but appreciated (5–10% in restaurants). Use small Lekë denominations for convenience.

Plan Your Albanian Adventure with Albanian Century

Understanding Albania’s currency, the Lek, is key to enjoying its vibrant markets, stunning coastlines, and cultural treasures. From sipping coffee in Tirana’s Blloku to renting a beachfront apartment in Sarandë, the Lek ensures affordable and seamless experiences. For expert guidance on rentals, property investment, or travel planning, contact Albanian Century at +355 69 517 3114 (WhatsApp, Telegram) or email office@albaniancentury.com. Visit https://albaniancentury.com to explore properties and start your Albanian journey today!