In particular, the rapid surge in prices over the last year, has been brought under control and inflation has been declining in recent months, through easing the pressures on household' budgets and reducing uncertainties for enterprises. At the same time, the banking sector appears sound, indicators on the stability of both public and external debt have been improving, the financial environment is calm, and enterprises and households' balance sheets remain solid. These achievements are not a result of chance. They reflect, among other things, adequate and coordinated monetary, financial and fiscal policies and the results of continuous structural reforms which we have undertaken in the financial sector. The proportional and timely reaction of these policies has minimised the immediate consequences of shocks and has safeguarded the production capacity of Albania. In parallel, continuous structural reforms have strengthened the flexibility and resilience of the Albanian economy, by helping both the monetary and financial stability of Albania. 1/8  BIS - Central bankers' speeches  In my remarks today, I will provide an overview on the main directions of the Bank of Albania's work throughout 2022 and its results. I would then like to share a brief summary of our expectations and highlight some of our primary objectives for 2023. ***  1. The outlook for the economy, price stability and the Bank of Albania's monetary policy The global geopolitical and economic environment experienced upheaval in a radical and unexpected manner at the outset of 2022, due to the Russian unjustified invasion of Ukraine.
If monetary conditions in Switzerland called for it, the SNB could sell some of its reserves in order to shorten its balance sheet. Although we have not yet reached this point, such an eventuality should not be ruled out. 11 The SNB must be able to deploy its balance sheet at all times, quickly and without restriction. These reserves therefore have to meet stringent security and liquidity requirements. Consequently, as chart 3 shows, we invest a very large proportion of our reserves in government bonds denominated in the major currencies, such as the euro, the dollar, the yen, pound sterling and the Canadian dollar. Holding liquid investments that can be mobilised rapidly allows the SNB to use its balance sheet at any time, should monetary policy require it. A second aspect that differentiates us from other investors is that we remain as neutral as possible vis-à-vis the market. In other words, we must be able to move large volumes without unduly influencing prices. This neutrality ensures that the SNB is able to build up and scale back its investments quickly and efficiently, while avoiding conflicts of interest with its mandate. Neutrality also guarantees that the SNB’s investment policy remains independent of all political considerations. In this sense, neutrality is an essential condition for the optimal fulfilment of our mandate. Finally, at the operational level, the SNB differs from other investors in that it cannot protect itself against the greatest risk to these reserves – currency risk.