BANK OF ALBANIA

PRESS RELEASE
Governor Sejko: Welcome address at the Fourth Conference of the Museum of the Bank of Albania

Publication date: 08.02.2023

 

Honourable Minister Margariti,

Dear President of the Albanian Academy of Sciences,

Distinguished academics, professors and guests,

It is a great pleasure to welcome you to the Fourth Conference of the Museum of the Bank of Albania and an honour to open the proceedings of this Conference. This event is taking place, after two years of global pause due to the Covid-19 pandemic outbreak.

The organisation of this Conference is one of the most prominent events for the Museum of the Bank of Albania, in helping us to enrich and profound the studies on the exposed collections. At the same time, it serves as a platform for Albanian experts to discuss and display their research work.

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The Museum of the Bank of Albania, brings together for the fourth time experts from renowned research institutions, such as: the Albanian Academy of Sciences, the Albanian Institute of Archaeology and History, as well as university professors from Tirana. The participation of colleagues from central banks, who are going to deliver their presentations on the role and importance of the medieval monetary system, is a value added to this event.

As suggested by its title "The Medieval, the forerunner of a well-organized monetary system”, participants will share their perspective on the foundation and functioning of monetary systems of a state organisation, their currencies, and the nature of financial systems. The characteristics of these systems appear as determinants for the economic boom, trade relationship, the international value and function of currency in dominating global markets, as well as the prosperity and the longevity of a state or an empire. Looking back at the history, it is crucial that we may find answers on issues we are concerned nowadays, like price stability and financial stability, more visibly expressed in the stability of the currency and its role related to the confidence in the financial system. The distinguished Solidus of Byzantine Empire or Venetian gold ducat, which were dominant in financial monetary system and in global trade for some centuries, show that the confidence of issuing authorities is the basis for the own confidence of the currency and, in this view, to the stability of the financial system. This lesson is still valid today, as expressed in the intervention of central banks through the increase of interest rate to keep inflation under control in the last year.

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Middle ages are also known for innovations in financial markets and their crucial role in the development across economies. The invention and deployment of bills and Letter of Credit, established new opportunities for expanding the trade and conducting payments with no need of cash circulation, thus considerably reducing the risk and costs on commercial and financial transactions. The above-stated financial instruments and many others became the first foundation for the development of the banking activity and the birth of financial markets.

These innovations, which have been enriched over centuries with new financial and monetary instruments, do not differ in view of the purpose and effects they provided on important processes, which have dominated or dominate money and financial markets at present. Here we can mention inventions of the past century, like credit and debit cards, or the current ones like digital currencies, instant payment instruments and systems, in addition to other innovative instruments of financial intermediation. Like in previous centuries, financial inclusion of the population is in the essence of this technological developments by establishing new possibilities and reducing costs. In this context, while they complete and enhance the financial market, they strengthen the economic prosperity of both population and family.

For all these reasons, the Bank of Albania has paid special attention to the establishment of new opportunities for the development of innovative payment instruments through the new law on payments and other legal and regulatory initiatives, which enhance the financial inclusion of the population.

Discussions on the above two topics, which address the stability of monetary systems and the birth of financial instruments shed light on the crucial moments that have determined either their success or failure and display valuable lessons for the formulation of the today development policies.  I am pleased to see that these important topics address also the history of the Albanian and our region systems. The Museum of the Bank of Albania will continue to support and enrich the scientific research on both monetary and economic history across the Albanian territories, while focusing in two key aspects: i) enhancing the historic research; and ii) strengthening the collaboration with the researchers and institutions of cultural heritage.

Our Museum, is both an exhibition of rare collections, and a platform where scholars find the necessary space to develop and present their researches, providing to the public an institution of knowledge, where the latter may be informed on the economic and monetary history, through collections, various exhibitions, study activities and our publications. The Bank of Albania, as the most important institution in Albania, requests and encourages the collaboration with all academic and cultural heritage institutions, related to the field of its activity.

I take this opportunity to thank the Ministry of Culture for the collaboration and the support provided to the Museum regarding all the other activities related to numismatic and cultural heritage. All this heritage exhibited in the Museum of the Bank of Albania represents also a medium for the implementation of the programmes and the conduction of the activities related to financial education. Our Museum, through the history embodied in its exhibition, provides concrete and understandable samples to illustrate the main concepts of money, financial systems and monetary policies, which are at the gist of the financial education’s objective.

Concluding, I kindly invite you to join the proceedings of this Conference over its three sessions and I would like to thank all the participants, academics, researchers, the speakers, the audience and our collaborators, who responded positively to our call for participation.

I wish the conference a great success!