Approximately €4.3 billion are currently circulating outside the banking system in Albania. The latest figures show that the amount of physical cash held outside banks continued to grow at a rapid pace during the first quarter of 2025.

Compared to last year, this represents an increase of around €400 million, or 10% more cash in hand.

These numbers indicate a growing presence of physical currency in the economy, which is tied to the cultural preference of Albanians to make payments in cash and to keep savings at home.

Informality and income from illicit sources also contribute to this behavior.

To curb the use of cash in the economy, Albania’s Medium-Term Revenue Strategy had planned to introduce a limit on cash payments between individuals in 2025, while also reducing the cash payment limit between businesses from the current threshold of 150,000 lekë.

Additionally, fees for the use of POS terminals between second-tier banks and taxpayers are expected to decrease.

To further encourage electronic payments, 4,750 POS terminals are planned to be distributed across the country this year for merchants.