BANK OF ALBANIA STATEMENT
Money market and foreign exchange market interventions during the third quarter of 2010

1.1. Open market operations

The money market interventions over the third quarter 2010 consist of open market operations to supply liquidity.

In supplying liquidity, the Bank of Albania operated primarily through its main instrument, the one-week Reverse Repurchase Agreement (R/REPO), averagely ALL 17.86 billion1. The 3-month R/REPO was employed in July, by ALL 3.0 billion, whereas one-month R/REPO was used in 2 cases during September, at ALL 4 billion and ALL 3 billion, respectively.

1.2 Standing facilities

The overnight deposit instrument was employed in 26 cases over the third quarter of year 2010, averagely by ALL 0.48 billion, about ALL 0.15 billion higher relative to the previous quarter. Also, the use of overnight deposit occurred more intensively during the last days of the period, to maintain the required reserve.  

The overnight loan instrument was employed in 18 cases, averagely ALL 0.89 billion, over the third quarter of 2010.   

The following chart provides a summary of the Bank of Albania's interventions in the money market during the first 9-month period of year 2010.