“Anti-euro” plan: Financial and monetary institutions engaged in boosting use of ALL

The Bank of Albania, Ministry of Finance and the Financial Supervisory Authority signed Tuesday a memorandum of understanding to expand the use of Albanian Lek in the economy and financial system of the country.

The signing of the document was announced earlier and it aims to reduce the risks to financial stability and increase the effectiveness of the monetary policy.

Through the memorandum, the Ministry of Finance engages to increase the preference of economic agents for the use of ALL in financial transactions and savings, as well as to undertake or support any other legal or operational action that supports the expansion of the use of ALL in repayment of financial obligations.

The Ministry of Finance is also committed to increase preference for borrowing by public institutions in the national currency, as well as to provide expertise and cooperation to further develop primary and secondary market of debt securities in ALL.

The Bank of Albania is committed to maintain the current monetary policy framework based on inflation targeting and cheap exchange rate, as a condition for maintaining public confidence in the national currency.

The Central Bank will improve the regulatory framework, operational and oversight, in order to reduce the exposure of the banking sector to foreign currency.

Regulatory requirements of transparency in financial products and services will be tightened, so that the risks of exposure to foreign currencies will be clearer to economic agents.

Bank of Albania will also contribute to the development of products and financial instruments, supporting the use of appreciation by banks and their clients.

Similar commitments were also taken by the Financial Supervisory Authority for markets regulated and supervised by it.

About 60% of loans and 53% of the deposits of the Albanian financial system are in foreign currency, while the euro is widely used for domestic transactions, especially in the trading of real estate and durable goods.

SCAN

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