doing, assist firms and investment funds to plan better, they also expose the investor to unanticipated changes to the short - term rates. as such, investors tend to require a term premium to account for this interest rate risk, which often results in volatility in times of greater uncertainty regarding the path of monetary policy. an overnight rate is advantageous in this regard as it should not contain much of this risk. instead, it should change as the central bank changes its policy rate. market participants who still require a term rate should consider using an average rate based on zaronia compounded in arrears. this requires a shift in the market ’ s convention from determining interest at the beginning of the accrual period to determining it at the end of the accrual period. as many of you know, we have set up various workstreams in gearing up for the transition. it is not possible here to do justice, to reflect on the rich work of all the workstreams, but i will give you a flavour of what is being discussed at least in one or two them. 15 this has been enforced by some regulations, such as section 8 ( 4 ) of board notice 90, which is currently under review, which prevents money market portfolios from investing in securities whereby the interest amount is not known at the commencement of the contract. page 7 of 12 the derivatives workstream has proposed market conventions for interest rate swaps, whose floating leg will use compounded zaronia period average rates that will be determined in accordance with the isda methodology. while the use of compounded risk - free rates is fairly common in global markets, it does present a significant change in our market. firstly, the nature of zaronia as an overnight rate will enable the introduction of overnight index swaps ( ois ). in this regard, the derivatives workstream has proposed market conventions that largely align with international best practice. secondly, as zaronia will track the evolution of actual interest rates, the need for hedging risk using forward rate agreements ( fras ) will largely diminish. as a matter of interest, the decline of fra trading was remarkable in the libor transition, where the daily turnover of fras decreased from usd1. 9 trillion in 2019 to usd0. 5 trillion in 2022, a 19 % decline in total over - the - counter ( otc ) derivatives turnover. much of the residual reflects exposure to usd - denominated turnover

ardian fullani : albania on the road to eu integration speech by mr ardian fullani, governor of the bank of albania, at the launching ceremony of the needs analysis for the bank of albania project, tirana 17 april 2014. * * * dear mr. mersch, dear mr. hamza, dear mr. bajrami, your excellencies ambassadors, dear guests, the purpose of the programme we are launching today is to support the bank of albania in the process of approximation with the eu central banking rules, procedures and standards. this is another step forward in the increasingly closer cooperation between the bank of albania, the european central bank ( ecb ), and the eurosystem. i am delighted we have here today the governor of the central bank of kosovo and vice governor of the national bank of macedonia, as co - beneficiaries under this project. the project addresses 13 different fields of central banking, as identified by bank of albania and ecb experts, wherein the bank of albania needs to make progress to reach comparable benchmarks to an eu central bank. these fields relate to all the main functions of the bank of albania, such as monetary and financial stability, operations, financial infrastructure, transparency, accountability and human capital. for the first time, information technology is also incorporated in the project scope, hence reflecting the impact of technology ’ s evolution on central bank operational systems over the past decades. the cooperation programme will be implemented with the support of experts from 11 central banks in the eu, with the ecb being the overall coordinator. only two years ago, the bank of albania successfully concluded a twinning project with two of them : banca d ’ italia and banque de france. during the six - months of the project implementation period, central banks of the eurosystem will provide expertise through training, conferences, seminars, study visits and support to strengthen administrative capacities, and regular technical missions. this form of cooperation will aim at fostering the existing relations and building a broader network of cooperation between the bank of albania, central banks of the region and the eurosystem. the project is funded by the european commission, in the framework of support policies for the central banks of the western balkans, to promote macroeconomic and financial stability in the region. this form of technical assistance has been particularly successful in the past, creating strong institutional ties between the central banks of the eurosystem and those of our region. the twinning is based on a detailed plan of