BANK OF ALBANIA

PRESS RELEASE
Bank of Albania interventions in the money market and foreign exchange market over Q2 2015

Publication date: 09.10.2015

 

1.1. Open market operations

Money market interventions during 2015 Q2 consisted of open market operations for temporary liquidity injection and permanent operations for structuring Bank of Albania's portfolio.

The total amount of injected liquidity averaged ALL 28.35 billion, from ALL 21.30 billion injected in 2015 Q1, and ALL 20.61 billion in 2014 Q2.

To inject temporary liquidity, the Bank of Albania employed its main instrument, the one-week reverse repurchase agreement - on average, ALL 19.50 billion a week*, and the one-month reverse repurchase agreement, on average, ALL 3.28 billion a week*.

Overnight injecting transactions were employed in six cases, being concentrated at the end of the reserve maintenance period.

In 2015 Q2, outright transactions continued, aiming at maintaining the BoA's participation in T-bills not higher than 70% of each total issue.

In 2015 Q2, four sale auctions of six-months Treasury bills were organised, which lowered the BoA' portfolio, totalling ALL 2 billion, being compensated by the organisation of eight purchase auctions of  12-month Treasury bills, totalling ALL 2.5 billion.  Hence, as at end of 2015 H1, the Bank of Albania's' portfolio returned to the level of the beginning of year.

1.2.  Use of standing facilities

The overnight deposit facility was employed 11 times, averaging ALL 0.95 billion, against 46 cases in the previous quarter, averaging ALL 6.74 billion.

The overnight loan was employed in three cases, corresponding to the end of the maintenance period for ALL 0.98 billion, on average. In the previous quarter, overnight loan was employed in 10 cases, averaging ALL 2.61 billion, respectively.