BANK OF ALBANIA
First Deputy Governor of the Bank of Albania, Ms Luljeta Minxhozi, attends the regional summit on ''Financial and Monetary Stability of the Region in Uncertain Times of Prolonged Geopolitical and Economic Crisis'', Bečići, Montenegro
Publication date: 30.05.2023
On 29-30 May 2023, the First Deputy Governor of the Bank of Albania, Ms Luljeta Minxhozi attended the 10th regional summit held in Bečići, Montenegro.
This annual summit brings together executives of central banks of Montenegro, Macedonia, Bosnia & Herzegovina, Croatia, Kosovo, Serbia, as well as ministers of finance and tax directors from the countries across the region.
This year’s summit entitled “Financial and Monetary Stability of the Region in Uncertain Times of Prolonged Geopolitical and Economic Crisis" addressed the latest developments in the regional economies. The summit was organized into three main panels, focusing on: (i) maintaining the stability of prices and the banking system in uncertain times of; (ii) healthy public finances – the key condition for economic growth and the building of a modern market economy in conditions of extended geopolitical uncertainty; and (iii) reform and modernization of tax authorities – goal, reach and limits.
At the invitation of the organisers, the First Deputy Governor of the Bank of Albania, Ms Luljeta Minxhozi, delivered a speech at the panel of governors, on "Maintaining the stability of prices and of the banking system in times of uncertainty”.
Ms Minxhozi, at the beginning of her speech, highlighted that such activities provide an opportunity to exchange opinions and experiences among central banks of the regional countries. Then, the First Deputy Governor presented one of the most challenging issues that Bank of Albania is experiencing currently, the upsurge in price.
Ms Minxhozi stated that the inflation targeting regime and the free-floating exchange rate regime implemented in Albania have functioned perfectly well and have helped Albania in its convergence process, by underpinning the economic growth, the economic and financial stability, as well as the increase and expansion of financial sector. She added that like every country, Albania is experiencing the impact of high inflation rate, both domestic and imported one. However, inflation rate in Albania has been lower compared to other regional countries due to the production of energy from domestic hydro sources, as our country has not imported large quantities of energy, thus its price has not affected the overall increase in prices.
Deputy Governor Minxhozi emphasised that the Bank of Albania has guaranteed the monetary and financial stability in Albania, by rising the key interest rate to fight inflation in accordance with its main objective of price stability. Despite the challenging situations, the economic policies implemented by the Bank of Albania helped to maintain a relatively low inflation level compared with regional countries.
In this context, Ms Minxhozi also pointed out that the coordination of monetary policy with fiscal policy in Albania remains of particular importance. Fiscal consolidation and convergence with the monetary policy in the economies across the region are helpful factors for the monetary policy and macroeconomic development of our countries.