an increased activity in money and capital market, while the interest rate performance was generally oriented by the bank of albania ’ s monetary policy. under the conditions of excess liquidity, the interest rates had a downward trend during the first half of the year. the interest rates went upward after the tightening signal of monetary conditions in the second half of the year. the interbank market was more active during 2006, thus ensuring a more efficient way of banks ’ excess liquidity management. the average daily volume of transactions amounted to all 1. 6 billion or all 0. 2 billion more than the previous year average. the interbank market was characterised by narrowing the interest rate spread according to maturities and their positioning close to key interest rate. the average overnight - weekly interest rate spread dropped to 0. 7 percentage point in 2006, from 1. 6 percentage points in 2005. in the first half of 2006, there was a constant decline in treasury bills yields and government bonds, due to low government demand for funds. in the second half of 2006, following the bank of albania ’ s tightening signals and the increased demand for liquidity in the system, there was a gradual rise of these yields. the yields increased respectively by 0. 83, 0. 45 and 0. 98 percentage point in comparison with the previous year. the government bonds issues has increased compared to the previous year, making the banks ’ portfolio, as the sole participants in this market, increase to all 37. 0 billion. the share of bonds to total government securities increased 22 percent in 2006 from 12 percent in the previous year. their maturity structure varies from 2 to 5 years. five - year bonds were issued for the first time in november of this year, for the amount of all 6. 3 billion. the demand for them resulted higher than the issued amount. lek deposit interest rates went down during the first half of 2006, and up after the tightening monetary policy signals. the interest rates were raised faster for long - term maturities, reflecting the adjustment of their term to long - term government debt rise. lek credit interest rates went down for all maturities during 2006. the weighted average interest in december 2006 fell to 12. 92 percent, from 13. 50 percent it was in the previous year. though the intermediation cost declined in comparison to the previous year, the spread level is still high. it is influenced by imperfect competition in this market and by higher risk nature of loans extended in all. the interest rates of deposits den

. let me conclude this opening address with some personal anticipation. the banknote and coin, as classical symbols of the medium of exchange, but also as objects that stylishly represent the historical and artistic values of the time, will continue to be part of economic reality for the future generations as well. the albanian people have written poems about money. in his “ autobiography of the people in verses ”, kadare writes : “ holding the horse reins / breastfeeding the son / the gold pouring over the forehead. holding the mule rein / breastfeeding the daughter, the gold pouring over the neck. ” the currency museum we are initiating today will not only preserve this historical memory, but it will continue to enrich in the future as well. this is the beginning of the national museum of monetary and numismatic values that the bank of albania will soon offer to the public in its reconstructed headquarters, and present the added historical values of our nation. in conclusion, let me thank the albanian and foreign collectors and the national historical museum for their cooperation in organizing this exhibition. bis central bankers ’ speeches