capital flows in the australian economy ; one of three noteworthy changes in recent years. in the decade prior to the global financial crisis, around two - thirds of foreign capital flows into australia was directed to the financial sector, amounting to an average inflow of around 6½ per cent of gdp over this period. since 2007, as i have noted on other occasions, 5 inflows into the banking sector have declined considerably to the point where the banking sector has been a net repayer of offshore borrowing ( graph 4 ). graph 4 at the same time, foreign purchases of australian government debt have increased significantly, which has seen the foreign ownership share of commonwealth government securities increase from 50 per cent to around 70 per cent currently, even as the stock of issuance has risen fivefold. the abs began publishing an industry breakdown of capital flows data in september 2006. debelle g ( 2011 ), “ in defence of current account deficits ”, address at adbi / unisa workshop on growth and integration in asia, adelaide, 8 july. bis central bankers ’ speeches both of these two large changes in the composition of capital flows directly relate to the upheavals in global financial markets over the period. in contrast, the large increase in capital flows to the resources sector is not related to the financial crisis – being obviously a direct product of the resources boom, which is itself a function of the large increase in commodity demand from emerging markets. in thinking about the effect of capital flows on the value of the australian dollar, it is important to take account of all of these changes in capital flows. simply focusing on the developments in only one particular type of capital flow can give a partial picture of what is going on. moreover, i have not talked at all here about changes in the outward flows of capital. while these flows are also large, over the period in question here, changes in their size have not been so noteworthy. so in terms of the effect on the australian dollar, of the three major changes in capital flows we have seen over the past six years, two of them : the capital inflow to the resource sector to fund investment along with the increased purchases of government debt, have been putting upward pressure on the currency. but at the same time, the reduction in offshore borrowing by the banking system has been putting downward pressure on it. the net effect of all these flows however, is that the australian dollar is higher than one would expect, given fundamentals such as the terms of trade

gent sejko : intensifying mutual cooperation between albania and turkey speech by mr gent sejko, governor of the bank of albania, at the signing of the memorandum of cooperation between the bank of albania and the central bank of the republic of turkey, tirana, 6 november 2017. * * * honourable governor cetinkaya, your excellency ambassador bayraktar, dear members of the delegation from the central bank of the republic of turkey, dear guests, ladies and gentlemen, i have the pleasure to have the governor of the central bank of the republic of turkey, mr murat cetinkaya, as our guest on a one - day visit to the bank of albania, on the occasion of the signing of a memorandum of cooperation. this memorandum is an expression of our common will and desire to continue and intensify the mutual cooperation that has been already in place for years. opening addresses are supposed to be brief and i would rather not break with such tradition. however, i find it appropriate to share with you some thoughts on : ( i ) the international context surrounding the signing of this memorandum ; ( ii ) the current level of the bilateral relations between albania and turkey ; and, ( iii ) the main aspects of future cooperation. 1. international context our institutions – the respective central banks – play a significant role in promoting and guaranteeing monetary and financial stability, supporting the sustainable development of our countries and the welfare of our citizens. the central banks draft, implement, monitor and assess their monetary, micro and macro - prudential policies against the backdrop of a highly integrated and interdependent global economy. on the one hand, integration bolsters economic growth, enabling a more efficient distribution of labour and capital, thus facilitating the transfer of knowledge and of technology, and promotes the adoption of best practices in economic and financial management. on the other hand, experience has shown that globalisation may spill over and amplify negative shocks among the countries, hence creating risks to financial stability, which interfere with central bank mandates. the experience of albania during the transition period and onward perfectly illustrates these aspects. the albanian economy has benefited from integration with the global economy ; but, recently, we have also been under the pressure from consequences that some of our trading partners experienced due to the financial crisis. therefore, our response functions have become increasingly complex, relating not only to the adjustment of the domestic product, labour and capital markets to external shocks, but also to the performance of international