BANK OF ALBANIA STATEMENTS
Money market and foreign exchange market interventions over the third quarter of 2007

The interventions in the money market over the third quarter of 2007, included open market operations, mainly to inject liquidity, in view of its situation in the banking system.

In order to inject liquidity, the Bank of Albania has used during almost all the period, the reverse repurchase agreement of one-week maturity. By means of this instrument an average of ALL 1.1 billion per week were injected.

Forecasting that the lack of liquidity would last over all the third quarter, forecasting based on the seasonal outflow expectations, during this period were executed four interventions with repurchase agreements, of maturity term longer than a week. Hence, ALL 5.00 billion were injected through reverse repurchase agreements of three-month maturity and ALL 3 billion through reverse repurchase agreements of one-month maturity.