Bank of Albania interventions in the money market

Bank of Albania interventions in the money market

Tirana, 8 January 2016/Independent Balkan News Agency

Money market interventions during 2015 Q3 consisted in open market operations for injecting temporary liquidity.

The total amount of injected liquidity averaged ALL 36.4 billion, from ALL 28.4 billion in the previous quarter and ALL 30.2 billion in the previous year.

To inject temporary liquidity, the Bank of Albania employed its main instrument, the one-week reverse repurchase agreement, on average ALL 22.14 billion, from the average of ALL 19.50 billion a week in the previous quarter.

The one-month injections averaged ALL 3.94 billion, from ALL 3.28 billion a week in the second quarter.

Since the end of July 2015, Bank of Albania conduced three-month injections in three cases, driving the liquidity being injected through this maturity in the current quarter to average ALL 2.55 billion at a nominal value, and ALL 5.7 billion at the end of the quarter.

The overnight injecting transaction was employed in one case, on 23 September, at the end of the reserve maintenance period.

Bank of Albania did not conduct outright purchase or sale of treasury bills during the third quarter of 2015.

Use of standing facilities

Banks employed the overnight deposit facility twice compared to 11 cases in the previous quarter, averaging ALL 2.0 billion, from ALL 0.95 billion in the second quarter.

The overnight loan was employed twice, at an average of ALL1.4 billion as opposed to three cases averaging ALL 1.0 billion in the previous quarter.