When a Stamp Saved the Country: The Decisive Role of the Albanian Franc after World War II

The story of the Albanian franc after the end of World War II remains one of the most remarkable episodes in the country’s postwar economic stabilization. At a time when Albania faced monetary uncertainty and the threat of inflation, a swift financial intervention prevented the collapse of the postwar economy.

According to a report dated June 22, 1945, the State Bank of Albania announced the stamping of banknotes and cheques issued by the former National Bank of Albania. After the establishment of the new government, the country faced serious difficulties due to the inability to print new banknotes and replace those already in circulation, which was fueling inflation.

To normalize the monetary situation, authorities decided to intervene by stamping existing banknotes. The process took place nationwide from June 27 until July 1945. Initially, in border areas, the stamping applied only to the 20- and 100-Albanian franc denominations, as well as to cheques.

The stamp had a rectangular shape and featured a double-headed eagle with a star above it, along with the inscription “State Bank of Albania,” rendered with horizontal lines and distinctive shading. Banknotes and cheques that were not presented for stamping were declared invalid and removed from circulation.

This intervention had a direct impact on stabilizing the monetary circulation. Banknotes below the 20-franc denomination were excluded from the process. By the end of 1945, around 70 percent of the Albanian franc in circulation until the end of 1944 had been stamped.

Thanks to this timely measure, the movement of goods and services was not paralyzed, and the economy avoided a severe financial crisis. This remains a rare example of how the Albanian franc played a decisive role in saving the postwar economy from collapse.

"KORCA BOOM"