Bank of Albania during the first quarter of 2016, has intervened in the money market by injecting liquidity and transactions of Treasury bills, with the aim of better redistribution of liquidity in the banking system.
Bank of Albania makes aware that the total amount of liquidity injected into the banking system is Lek 10.2 billion versus 31.1 billion in the previous quarter.
The need for liquidity declined as a result of government operations for the purchase of securities prior to maturity and the maturity of its securities at the end of the fourth quarter of 2015.In order for the redistribution of liquidity, the Bank of Albania has conducted transactions with outright with the second-tier banks.
In open market operations, the Bank of Albania has used its main instrument, the reverse repurchase agreement of one-week maturity for temporary liquidity on average 7.5 billion versus 16 billion in the previous quarter.
As a result of increased liquidity in the banking system, there are matured 4 injections of December and the 3-months injection of October, while the agreement of reverse repurchase with one month maturity was used only in two cases, injecting roughly 2.6 billion lek against 10.8 billion in the fourth quarter of 2015.