BANK OF ALBANIA STATEMENT
Money market and foreign exchange market interventions during the second quarter of 2008

1. BANK OF ALBANIA INTERVENTIONS IN THE MONEY MARKET
1.1. Open market operations

Money market interventions during the second quarter of 2008 continued to consist in the employment of the Bank of Albania's main instrument, reverse repurchase agreement of one-week maturity. On weekly basis, it has been injected an average of 3.74 billion leks.

1.2. Use of standing facilities

During the second quarter of 2008, banks employed the overnight deposit in order to invest the free liquidity. Its average daily level amounted to 3.8 billion leks, compared to 2.6 billion leks the previous quarter.

In view of meeting interbank market needs, the overnight loan instrument continued to be moderately employed during this quarter, around 0.26 billion leks in 3 cases of its application.

Chart 1 summarizes the Bank of Albania interventions in the money market during the first half of 2008.