Based on article 161 of the Constitution of the Republic of Albania, Bank of Albania is granted "the exclusive right to independently adopt the monetary policy."
Based on article 3, paragraph 4 a, of law no 8269 dated 23.12.1997 "On Bank of Albania", the main task of this institution is to"formulate, approve and adopt the monetary policy of the Republic of Albania in line with its main objective." The independent execution of monetary policy implies that Bank of Albania designs the policy in harmony with fiscal policy and other economic objectives, the Supervisory Council of Bank of Albania approves it and Bank of Albania independently determines appropriate instruments to implement the policy.
Based on article 43, paragraph a of law no 8269 dated 23.12.1997, "On Bank of Albania", the Supervisory Council of Bank of Albania has the following competencies: "To approve the monetary policy of the Republic of Albania determining the limits of Bank of Albania's transactions in open market, interest rates for deposits with Bank of Albania and discount and lending rates of Bank of Albania as well as the level of reserves and required reserves that secondtier banks should hold with Bank of Albania."
