However, the appreciation since 2007 is of an entirely different quality and even the appreciation shocks of the 1970s and 1990s pale in comparison. In particular, it must be borne in mind that the speed of appreciation was particularly high this time around. It is much more difficult to digest a rapid appreciation since it leaves companies with less time to initiate the process of adaptation. Even companies that would normally be in a position to absorb an appreciation and maintain their competitiveness are coming under pressure. Second, it must be emphasised that, on average, the export volume of Swiss products has reacted comparatively little to exchange rate movements. The qualification on average is an important one. In fact, the dependence on exchange rate movements of the two largest sectors in terms of export share (chemicals, including pharmaceutical products, and precision instruments and watches) is distinctly below average. Thus, these sectors’ share of total exports has gone up over time. By contrast, the adjustments some companies and industries have made to the strong franc have been – and still are – so far-reaching that they are having to completely rethink their future in Switzerland. Third, I am aware that it is easy for an outside observer to talk about the advantages of a strong currency. At the same time, the SNB’s various direct contacts with companies allow us to gain concrete insights into current problems.
Let me emphasise that, in Bank of Albania’s vision, the monetary policy oriented toward price stability, and the supervisory and regulatory policy oriented toward financial stability contribute to the sustainable and long-term development, and are complementary to each other. This creed is fully tested by experience, both in the world and in Albania. In the long-term horizon, the Bank of Albania is confident that the investment we have made in promoting financial stability will bear its fruit with regard to sustainable development, and will increase the space for monetary policy manoeuvring. In addition, accomplishing our price stability objective would enhance the confidence in the national currency, reduce volatility and foster transparency in financial markets, thus contributing to the sustainable development of the financial system. Meanwhile, in the short-term, the coordination of monetary policy and financial stability often present challenges and compromises. In this context, setting clear priorities, using the right instruments, and communicating transparently central bank actions and objectives are key elements for the success of our work. Concluding, I would like to reiterate that I am fully confident that in the course of the day, all the issues I posed above will be elaborated in greater detail. I do believe that the contribution of the eminent panellists and active input from all participants will be an added value in this regard. I wish the best of success look forward with the greatest interest to the outcome of your deliberations. ***  Thank you for your attention! 4/4  BIS central bankers' speeches