How much money do Albanians "spoil"? - 1 in 5 banknotes is damaged every year
Physical money circulates intensively in Albania, but is consumed rapidly.
Referring to the Bank of Albania data, processed by SCAN, it results that each year an average of 90 to 105 million banknotes are processed in the country, out of about 160 million in total circulation, which are checked for authenticity and suitability for recirculation.
Of this volume, about 1 in 5 banknotes is found to be unfit for use, due to physical wear, and is replaced with new banknotes. The unfitness rate has reached 21.5% in 2024, reflecting the intensive use of cash in everyday payments.
According to the Bank of Albania, small denomination banknotes, especially 500 and 1,000 lek, have the highest circulation rate and are therefore consumed faster than any other denomination. They are mainly used in small transactions, such as daily purchases and routine services.
This constant consumption also has an economic cost. International studies show that physical money can cost an economy between 1 and 1.7% of Gross Domestic Product, when printing, transportation, storage, security, and processing costs are included.
For Albania, this translates to around 25 to 43 billion lek per year, or 250 to 430 million euros. A cost that is not directly reflected on citizens, but is covered by the banking system, businesses and financial institutions.
Experts emphasize that in this context, digital payments appear to be more efficient and lower cost, reducing the costs of managing physical money and increasing transparency in the economy.
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