ardian fullani : 100 years of independence – our history reflected in the national currency speech by mr ardian fullani, governor of the bank of albania, at the opening of the exhibition “ 100 years of independence – our history reflected in the national currency ”, vlora, 16 november 2012. * * * dear mayor, dear ladies and gentlemen, it is a great pleasure for me to be here today in vlora on the occasion of the opening of the exhibition “ 100 years of independence : our history reflected in the national currency ”. it is extraordinary that we are only a few days away from the celebration of albania ’ s 100th anniversary of independence. in the capacity of the institution responsible for issuing the currency in albania, the bank of albania considers that it is its duty to inform the public at large about albania ’ s monetary history. the exhibition we are opening today is a contribution in this respect. it presents the journey of currency in albania from the declaration of independence to this day. it features a vast collection of artefacts of the albanian state monetary history. it has great material and cultural value as many of these objects are unique and date back to prior the issue of our national currency by the bank of albania. by touring a number of cities in albania, such as berat, gjirokastra, korca, shkodra and tirana, and making a stop in the city where albania ’ s independence was declared, we are walking along the same path as our national currency – the lek. we aim to draw the public ’ s attention to the fact that the state formation process and our modern history are not only about political and military events, or about biographies of people and institutions, but they are also closely linked to the history of our national currency. as soon as you enter this exhibition, you can immediately feel how the history of the albanian currency has walked hand in hand with our nation ’ s history and its major historical figures. they are so closely linked that when you hold a coin or banknote in your hand, the historical period during which it has been minted, printed and used, flashes in front of you just like in a photo. the currency, along with the language, constitute an inseparable part of our national identity and cultural heritage. by unfolding in its images people, events and the most important values of our history, the currency has contributed to strengthening the feeling of national identity in the albanian people. by acting as a common medium

##increasing importance in the assets structure of the banking system, constituting a considerable source of the demand for monetary assets. the credit / deposit ratio increases on a continuous basis, an indication that positively introduces the function of the intermediation role of the banking system in supporting the economic development. the balance credit rise marked during the eleven - month period of the year the value of lek 15. 3 billion, reflecting a rise of 30 percent relative to the yearend of 2003. the easing monetary policy of the bank of albania has helped smooth the appreciation pressure of the lek exchange rate. the differences between interest rates in foreign currency and those in domestic currency incurred a decline during 2004. however, the rising foreign currency inflows on one hand, and the reduction of imports volume on the other one, have created a temporary difference between the foreign currency supply and demand during the summer period. this misbalance has exerted a significant pressure on the appreciation of the lek exchange rate, fostering the foreign market volatility. the exchange rate volatility through this temporary rise of foreign currency supply has imposed the necessity of the bank of albania intermediation to the foreign market during the summer period, towards purchasing the foreign currency. though trade deficit increased, the current deficit in the third quarter has been lower than in the previous quarters, thanks to increased and positive balances of income, services, and particularly current transfers. the current transfers balance is estimated at usd 295 million, being higher than the 1 / 2 one of the first two quarters, and nearly 44 percent higher than the one of the third quarter of the previous year. overall, the balance of payments performance during 2004 was positive. the gross foreign reserve level, at the end of this period, was estimated at usd 1 billion and 244 million, adequate to cover 5. 1 months of imports of goods and services. based on the aforementioned developments, we may conclude that year 2004 contributed generally in further consolidating the country's macroeconomic equilibrium. although full data for the yearend of 2004 are not yet available, there is a crystallization of the idea that the primary targets projected in the medium - term plan on the country's development have been met satisfactorily. according to the latest estimations, the albanian economy grew by 6 percent under the conditions of a low inflation rate, far closer to the bottom level of the targeted band. the structural reforms, through their problematic concerns, have progressed during