As a result, borrowing or investment of free funds of second-tier banks at the Bank of Albania will ease the misbalance effects between the demand and supply for domestic monetary assets on the liquidity performance during the year. 2  Forecasts on the NDA and NIR objective growth during 2004 are based on the growth of gross foreign currency reserve by USD 45 million and the growth of the reserve money by nearly Lek 17.9 billion until the end 2004. 6  BIS Review 8/2004  Table 7. Liquidity performance during 2004 (in Lek billion).
T1  T2  T3  T4  2004  M2 growth  5.8  6.7  7.0  10.2  29.7  Money outside banks  1.7  3.1  3.2  6.9  14.9  Lek deposits  4.1  3.6  3.8  3.3  14.8  Deficit financing from the Bank of Albania  1.9  1.9  1.9  1.9  7.5  Deficit financing from banks  5.3  2.3  1.7  3.1  12.5  Credit to the economy  0.5  0.5  0.5  0.5  2.0  Borrowing from the Bank of Albania3  1.9  -0.8  -1.4  0.3  -/-  3.2  The demand of the economy for monetary assets  3.2.1  Currency position of the banking system  Net foreign currency assets of the banking system for the next year are forecasted to increase by nearly Lek 8.6 billion or 5.1 percent from the previous year. The increase of NFCA of the banking system will mainly come due to the increase of net foreign currency assets of the Bank of Albania, which will increase by Lek 7.1 billion. This is a 7.2 percent increase of the NFCA as compared to the 2.2 percent increase forecasted for 2003. The forecasted increase of foreign currency reserves of the Bank of Albania during 2004 at the level of Lek 5.4 billion will be the main source of the NFCA increase. Denominated in foreign currency, this increase is USD 45 million.