On the publication of the forecast of the factors that affect the need for liquidity

Publication Date 23.01.2018

To complete the implementation framework of the monetary policy, starting from 23 January 2018, the Bank of Albania will publish its forecast on the factors that affect the need for liquidity of the banking system.

The forecast of the need for liquidity in the banking system is done to calculate the size of the Bank of Albania operations in the open market. The Bank of Albania, through regular weekly operations and other operations, offers the market the necessary quantity of liquidity so that the trade rates in the currency market range around the key interest rate.

The purpose of this publication is to guide banks in their participation in the open market operations in auctions and their positioning in the money market, to enable the successful transmission of the monetary policy of the Bank of Albania signalled by the key rate.

The forecast will be published together with the announcement of the regular weekly intervention, each Tuesday on the official website of the Bank of Albania and on the Reuters platform.

Since the factors influencing the need for liquidity are beyond the direct control of the Bank of Albania, their trend may be different from the published expectations. These expectations represent the best forecast of the Bank of Albania, based on its forecasting tools. However, the Bank does not take responsibility for forecasting factors beyond its control.

The publication of the forecast of the factors that affect the need for liquidity is made in accordance with the European Central Bank standards, and is a practice pursued by central banks, whose monetary policy is oriented towards maintaining price stability.

This development also contributes to enhancing transparency at the Bank of Albania.

For more detailed information, see section IV - Liquidity management and Monetary Policy implementation in the following link:




Copyright 2004-2016 Bank of Albania. All rights reserved.