ardian fullani : bank of albania exhibition – “ the currency and financial literacy through it ” speech by mr ardian fullani, governor of the bank of albania, at the opening ceremony of the exhibition of the bank of albania, tirana, 4 october 2013. * * * dear mr speaker of parliament, dear participants, in pursuit of alternatives to present the 100 - year journey of central banking, the bank of albania opens today an exhibition on “ the currency and financial literacy through it ”. the consolidation history of the state and the currency shows they have walked hand in hand over the centuries. we are all aware of the importance of currency in everyday events of our civilisation. cash, lek, franc, ecu, euro, dollar... instruments. call it as you wish. money is important! it is important not only for its functions to pay, save, or deposit, but also as an historical and artistic legacy of a nation ’ s journey through the centuries. to the religious, love for money was the root of all evil. to generals, it was the strongest weapon in the battlefield. to revolutionaries, it represented shackles on the workers wrists. what is money, after all? a mountain of silver, a ceramic tablet, or a piece of paper? how did it evolve into its presentday form, when we seldom see physical money? more often than not, a set of digits on computer screens? where does money come from and how did it evolve? as you will shortly see in the displays, this exhibition seeks to give an answer to these questions in a comprehensive language for all of us. above all, however, it commemorates an important date in history. the opening date for the exhibition “... the bank for albania is a second victory, after freedom... ” is 4 october 2013. today 100 years ago, on behalf of the provisional government of albania, ismail qemal bey vlora signed the first concession agreement on establishing an albanian national bank. at the opening of this exhibition, i feel happy and excited at the same time, not only as the governor of the central bank, but also as an albanian citizen. the exhibition brings to the fore for the albanian public one of the meritable contributions of the father of the country ’ s independence, placing him on the pedestal he rightfully earned through the activity and vision of a real statesman. the history tells us that central banking was not built in a day. it did

on real - sector developments over the fourth quarter has confirmed our projections for a weak aggregate demand and below - potential economic growth. however, it has shifted to the downside the balance of risks around the projection. low business and consumer confidence, sluggish labour market and tight lending terms continue to weigh on private demand. disposable income increased and consumer balances were liquid. however, consumers are reluctant to spend and tend to save. on the other hand, lack of final demand and unutilised capacities curbed private investments. the latest data on external trade show an annualised 13. 5 % widening of the trade deficit for december. exports of goods continued to trend up but import growth at double - digit paces bis central bankers ’ speeches led to a higher trade deficit for this period. imports widened as traders intensified their importing activity, one month in advance, awaiting the entry into force of the new fiscal package in january 2014. imports rose 15. 8 %, while exports rose 19. 5 %. fiscal policy was easing in 2013, giving 1. 3 percentage points impulse to economic growth. fiscal stimulus was reflected in higher expenditures and lower fiscal revenues. thus, budget spending increased 4. 7 % in annual terms, while fiscal revenues fell 0. 5 %. however, budget deficit was lower than expected, reaching 4. 8 % of the gross domestic product, from 6. 2 % projected. in 2014, the fiscal policy is expected to be cautious, reducing the budget deficit and fiscal stimulus. in view of this policy, arrears payment will improve the private sector balances and will create better conditions for the recovery of demand. the bank of albania has requested and supported taking of measures to maintain public debt sustainability. in spite of short - term costs, maintaining public debt at subdued and sustainable levels would lead to lower uncertainty, higher space for private sector and higher flexibility of public finances. in a longer term, we deem that an efficient and transparent fiscal rule should be adopted. in response to easing monetary policy and calm liquidity situation, financial markets appear calm in terms of trading and tend to slightly reduce the interest rates. the inter - bank market is characterised by higher volumes and low interest rates. following the seasonal increase at year start, the government security yields tended to fall again in february but did not reach december ’ s levels. as already expected, deposit and loan interest rates fell over the last months. monetary indicators performed in line with the real - economy developments and