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"River" of cash, around 4.2 billion euros circulated outside banks in 2024

Politiko 2025-02-10 20:53:14

"River" of cash, around 4.2 billion euros circulated outside banks in

The amount of money circulating outside banks in the country reached 423.5 billion lek or about 4.2 billion euros. This is the highest level ever recorded. Compared to the end of 2023, uncontrolled "cash" money expanded by 30 billion lek or 7.6 percent.

"Money circulating outside the banking system is part of the informal economy and along with it, there is also money from criminal activities that take place inside or outside our country," says expert Zef Preçi.

In relation to the total money circulating in the Albanian economy, which is estimated at 1.79 trillion lek, informal money constitutes almost 24 percent of the total. To understand the high level of money outside banks, it is enough to say that in European Union countries this indicator does not exceed 9 percent.

"Somewhere due to the incompetence of the administration and somewhere else by allowing the entry of money from criminal activities, we have today such a high level of money outside the banking system. Even though the Fiscal Amnesty was not allowed to be approved as a law, in fact it has happened in practice", adds Zef Preçi.

Economic experts estimate that such a large circulation of money outside banks is the main cause of the depreciation of the euro and other currencies. "I agree with international institutions that it may have some effect, but we can in no way claim that informal money can be fought by commercial banks," said the economic expert.

This "tradition" of cash payments paves the way for informality, makes the fight against money laundering more difficult, and negatively impacts the economy, as the circulation of money is uncontrolled.

For these reasons, the Ministry of Finance and the General Directorate of Taxes have begun work to limit cash payments, as a solution to reduce the circulation of money outside banks in the country. /A2 CNN

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