PRESS RELEASE
Bank of Albania interventions in the money market and foreign exchange market over 2024 Q1

1.1. Open market operations and factors affecting liquidity shortage in the banking system

In 2024 Q1, the Bank of Albania intervened in the money market through the open market operations to inject liquidity.

Average daily injections thorough liquidity injecting operations with maturity 1-13 weeks fell at ALL 22.70 billion on average, against ALL 47.70 billion and ALL 54.20 billion, respectively in the previous quarters. As usual, the accumulation of liquidity in the MoF account over the year and the concentration of expenses in the December-January period are the main factors contributing to the volatility of liquidity shortages in the banking system. Liquidity shortage gradually decreased from ALL 65.60 billion at the beginning of September, to ALL 41.10 billion at the beginning of 2024, and ALL 10.80 billion at the end of January. The rapid decline in liquidity shortage led to weekly injections falling to ALL 3.90 billion in the third week of January, while long-term injections remained at ALL 15.10 billion. Deposits of commercial banks at the Bank of Albania held as illiquid assets, have reached at nearly ALL 24 billion, practically indicating that the banking system is shifting to excess liquidity. 

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