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Monetary Policy
The Bank of Albania is responsible for formulating, approving and implementing the monetary policy in the Republic of Albania.

What is Monetary Policy?
- Analyses
Markets
In order to implement the monetary policy, the Bank of Albania carries out operations in the interbank market, the foreign exchange market and the government securities market.

Markets
Financial Stability
The Bank of Albania, in cooperation with other authorities, contributes to safeguarding financial stability in Albania.

Financial Stability
- De-euroziaton package
Supervision
The Bank of Albania is responsible for the licencing and supervision of banks and other institutions that conduct banking and financial activities in the Republic of Albania.

Supervision
- Handling complaints
Resolution
Resolution is the use of appropriate tools in the case of troubled banks facing financial distress.

Resolution
Statistics
The Bank of Albania compiles statistics to support the decision-making processes and bodies and performs statistical functions for the public at large.

Statistics
Currency
The Bank of Albania is the sole authority for issuing banknotes and coins of legal tender in the Republic of Albania. The monetary unit of the Republic of Albania is the "Lek”.

Role of the Bank of Albania in issuing the national currency
- Currency in circulation
Payments
To promote the normal operation and functioning of the payment system, as one of its main duties, the Bank of Albania plays an active role as the operator, overseer and catalyst and reformer of the payment systems.

Payment System
Museum and education
The Bank of Albania has been committed for years to expanding and deepening financial literacy in Albania, through educational activities and publications, as well as through its Museum.

Museum and Education
- Museum of the Bank of Albania
- Education

Monetary policy

The Bank of Albania is the only institution in the Republic of Albania responsible for the formulation, the approval and the implementation of the monetary policy. The monetary policy is formulated with a view to achieving the main objective of the Bank of Albania: to achieve and maintain price stability. It includes a series of principles, measures and instruments the central bank uses to intervene in the financial markets and the economy to achieve its principal objective.

In practice, this objective implies to achieve and maintain a low, but positive, level of inflation. In figures, the Bank of Albania aims for the annual growth of consumer prices to be at 3%.
The Bank of Albania applies the inflation targeting regime. Monetary policy decisions are based on thorough analyses of economic, financial and monetary indicators. The main indicator of the balance of inflationary pressures is the deviation of the forecasted inflation in the medium term from target.