BANK OF ALBANIA STATEMENT
Money market and foreign exchange market interventions during the second quarter of 2009

1. bank of albania interventions in the money market

1.1. Open market operations

Money market interventions during the second quarter of 2009 consist in the Money market operations for liquidity injection.

The Bank of Albania, to inject liquidity, employed its main instrument, reverse repurchase agreement of one-week maturity term. On weekly basis, the average being injected amounted to 16.68 billion*, as well as the adjusting instrument of longer maturity term, the three-month R/Repo. The adjusting instrument was used in 5 cases at an average of LEK 3.4 billion per auction *.

1.2 . Use of standing facilities

During the second quarter of 2009, the overnight deposit was used at a decreasing rate, owing to the fact that during the first quarter, with the purpose to encourage liquidity circulation, Bank of Albania decided to not temporarily accept overnight deposits. The decision on the rejection of deposits was implemented until the end of May 2009. The rejection of banks deposits for this period increased these latter's attention regarding the well-management of liquidity, which led to the reduced use of this instrument after the decision on the re-acceptance of the overnight deposits. This instrument was used at an average of LEK 0.14 billion in a day during June, relative to LEK 1.04 billion in a day over the first quarter of 2009.

The overnight loan instrument was not used during the second quarter of year 2009.