Annual Report 2016

The Bank of Albania is the country’s central bank and monetary authority and has the exclusive right to: (i) formulate, adopt and implement independently the monetary policy of Albania. The principal objective of the Bank of Albania is to achieve and maintain price stability, which is the best contribution of monetary policy for sustainable and long-term economic growth; (ii) issue and circulate the Albanian currency, ensuring the public confidence in the currency, by guaranteeing the quality of banknotes and coins, and providing secure and efficient currency supply to meet the needs of the economy; (iii) hold and manage official foreign reserves of the Republic of Albania, as a guarantee for withstanding adverse shocks to the real sector of the economy and support financial stability. As the issuer of the national currency, the Bank of Albania promotes the smooth operation of payments systems to: ensure a safe and fast circulation of the currency in the economy at minimum costs, prevent systemic risk, and safeguard the stability of financial institutions and markets.