At a global level, the buoyancy of EMEs has resulted in higher commodity prices, which coupled with some specific factors, such as weather problems impacting agricultural production and tensions in the Middle East and North Africa, have pushed food prices to record highs and oil prices to very high levels as well. This price shock, coupled with strong domestic activity, results in inflationary pressures that must be contained with tighter monetary policy. Contrary to the situation in advanced economies, international price (supply) shocks find fertile territory to propagate to wages or other prices when the economy is in a strong cyclical position. BIS central bankers’ speeches  1  This uneven recovery of the world economy is resulting in an uneven monetary policy landscape (Figure 2), which strengthens currencies in EMEs and induces capital inflows to these countries. Free trade and export-led growth have been a successful growth strategy in developing countries, which see the strengthening of their currencies as a threat to this strategy. Consequently, many countries have been trying to fight the appreciation via capital controls and exchange rate intervention. China and the U.S. deserve special mention, as they are at the center of the tensions of the adjustment. China has been the growth engine of the world, and it would not be an exaggeration to call it the “grower of last resort” for the global economy. They have decided to appreciate gradually, much more slowly than most EMEs and commodity exporters.
This improvement is attributable to the zestful actions undertaken by most banks to address the nonperforming loans portfolio, by offering solutions both within the e.g. repayment, repossession, restructuring, debt forgiveness), and also outside it the e.g. sale of loan portfolios). The financial infrastructure of the banking sector was strengthened further in 2019. The Bank of Albania and the National Payment System Committee have implemented the national strategy for 1/3  BIS central bankers' speeches  enhancing the small value payment market and increasing the financial inclusion of the population. The first results are promising and further steps by the Bank of Albania and the banking sector will be taken aimed at achieving a quantitative objective, which is to see the number of bank account holders doubled by 2022. The financial inclusion of the population is one of the most important current priorities. In 2019, the Bank of Albania and the banking sector paid particular attention to financial inclusion and financial education. It is a proven fact now that the improvement in financial inclusion contributes to the improvement of the welfare of the population, in a harmonised way. In this regard, we have designed and implemented, among others, a series of educational projects tailored to various segments of the population. Financial education, targeted publications with information on bank products and services, as well as developments in the payment infrastructure and payment services are concrete steps for providing more opportunities for access to finance by all segments of the population.