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

1. BANK OF ALBANIA INTERVENTIONS IN THE MONEY MARKET

1.1. Open market operations

Money market interventions during the third 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, the average being injected amounted to LEK 4.46 billion.

Bank of Albania intervened twice by employing also the instrument of overnight reverse repo's, at the amounts respectively LEK 2.00 and 3.00 billion.

1.2. Use of standing facilities

During the third quarter of 2008, banks employed the overnight deposit to invest the free liquidity. Its average daily level amounted to LEK 5.07 billion, compared to LEK 3.8 billion in the previous quarter.  The increase of liquidity being invested in overnight deposit was due to the growth of liquidity structural level held from the commercial banks.  The overnight loan instrument, around LEK 0.95 billion, was used in 4 (four) cases.

The following chart summarizes the Bank of Albania interventions in the money market during the 9-month period of 2008.