BANK OF ALBANIA STATEMENT
Interventions in the money market and foreign exchange market during the fourth quarter of 2006

The excess liquidity, which characterized the first nine-month period of 2006, decreased over the last quarter of the same year. In order to maintain the interest rates level, the Bank of Albania continued its weekly interventions for the withdrawal of excess liquidity. However, anticipating the absence of liquidity in the following months, it continued to inject liquidity through temporary (3-month reverse repos) and permanent instruments (T-bill outright purchase), as by the end of the third quarter the same year. The deepening of liquidity absence brought about the change of the Bank of Albania's intervention in November through the main instrument. Apart from injecting liquidity through longer-term temporary instruments, it began to inject liquidity on weekly basis.