Annual Report 2008 - Chapter IV. Monetar y policy instruments and foreing reserve management

Production date: 21.05.2009

Printed on: 21.05.2009

Author: BANK OF ALBANIA

 

 

The main goal in using monetary policy instruments is liquidity management, aiming at orienting the short-term interest rates around the base interest rate signalled by the Bank of Albania. Besides pursuing this goal, the monetary policy instruments are used in view of interbank money market development. In this context, open market operations are oriented towards creating a liquidity structural shortage in the banking system (first nine-month period), aiming at enhancing the monetary policy transmission efficiency, promoting the interbank market activity and at the same time, meeting its net needs.