PRESS RELEASE
Bank of Albania interventions in the money market and foreign exchange market over 2012 Q1

1.1. Open market operations

Interventions in the money market, over the first quarter of 2012, consist of operations for injecting and withdrawing liquidity.

The total amount of injected liquidity was up from an average of ALL 21.9 billion at the end of December 2011 to an average of ALL 22.8 billion in 2012 Q1.

To inject liquidity, the Bank of Albania employed its main instrument, the one-week reverse repurchase agreement, at an average of ALL 15.47 billion per week, as well as the three-month reverse repo agreement, which was used in five occasions, at an average of ALL 2.1 billion per auction. To withdraw excess liquidity, on 23.02.2012 and 23.03.2012, which coincide with the last two days of the two consecutive periods for the required reserve, the one-day reverse repo agreement was used, at an average of ALL 6.1 billion.

1.2. Use of standing facilities

During 2012 Q1, the overnight deposit facility was used in 18 occasions, at an average of ALL 1.78 billion, about ALL 1.57 more than in the previous quarter when this facility was used for the same number of occasions; its average, however, was ALL 0.21 billion.

The overnight credit facility was used in 12 occasions, at an average of ALL 0.21 billion, against 3 occasions in the previous quarter at an average of ALL 0.03 billion. The highest concentration of its use was during 12-23 January, which coincides with the last days of the required reserve period.