Physical money dominates the Albanian economy - BoA: 467 billion lek cash outside banks. Expands by 15% within a year
Around 467 billion lekë circulates in the hands of Albanians every day. According to data from the Bank of Albania, money outside banks increased by almost 1% in November 2025, continuing its upward trajectory until the end of the year.
If we compare it with November of last year, the physical money circulating outside the banking system has experienced a record increase of 15%. From 405 billion lek in November 2024, this amount has increased by 61.5 billion lek by November 2025.
Starting this year and until 2030, the government aims to reduce cash payments in the economy and increase electronic payments. The figures we just interpreted show that physical money continues to be very present among Albanian citizens and businesses, being widely used as a means of payment for the purchase of products or services, while bank cards continue to be on the rise, but their use remains more limited.
Our culture of making payments in cash, the failure to install POS terminals at all retail outlets due to the high commissions applied by banks, the level of the informal economy, money from illegal sources, are just some of the factors that contribute to this large amount of physical money found outside the banking system.
If it were the other way around, meaning more money circulated within banks, there would be more transparency in financial transactions between citizens and businesses. Transactions with physical money leave no trace. When payments are made outside banks, there are no electronic records, no transaction history, and it is difficult to control the origin of the money.
On the other hand, a high level of cash outside banks fuels corruption and illegal activities; cash is more easily used for bribery, money laundering, and illegal transactions.
The higher the money outside the banks, the lower the economic and fiscal transparency.
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