Communication – the key to a successful policy making Bank of Albania experience Gent Sejko Governor

What are BoA’ main areas of responsibility? Conducting monetary policy Safeguarding financial stability Promoting a safe and efficient payment system Securing sufficient currency and liquidity in the market Enhancing financial education and boosting financial inclusion 2 July 2019

What are the “reach out” challenges we currently face? Lack of adequate knowledge on: the financial system the role of the banks in the economy/society the role of the central bank Too much room for speculation in the media, leading to: Miscomprehension of BoA’s actions Misleading of different parties and the public 2 July 2019

How do we deal with them? Through a continuous and thoroughly-elaborated communication, regularly combined with financial education initiatives. 2 July 2019

How important is it? FED “The revolution […] isn’t about technology or speed. It’s a revolution in our understanding of how communication can influence the effectiveness of monetary policy. […] The FOMC had journeyed from “never explain” to a point where sometimes the explanation is the policy.” Janet Yellen’s Speech “Communication in Monetary Policy”, Washington , 4 April 2013 ECB “Communication is at the heart of monetary policy. It is a policy tool in itself.” Mario Draghi’s Speech “Central bank communication”, 14 July 2014 2 July 2019

Principles we follow Be clear & understandable Easy and comprehensible messages Consistent Be transparent Influence the market expectations Guided by medium-term Be a two-way communicator Reach out a broad-based and diverse audience Listen and learn from the public’s needs 2 July 2019

Our objectives Informing the public about BoA’s tasks, policies and initiatives Influencing economic policy decisions Guiding and advising market behaviors Bolstering credibility and reputation of BoA Supporting the central bank activities 2 July 2019

Channels we use (new) Website Social media Museum Activities Public Numismatic & educational Social media Facebook Twitter YouTube Flickr Website Activities Public Educational Informal 2 July 2019

Other channels we use (traditional) Publications Reports Analyses Surveys Books Meetings Parliament Government Financial system Businesses Ad hoc Press Conferences Releases Speeches Interviews 2 July 2019

Throughout a year 8 90 910.000 130 13.500 followers 5.000 3.100 press conferences 90 activities and meetings 130 press releases, speeches and interviews 3.100 Museum visitors 5.000 pages of publications 13.500 followers 910.000 website users 2 July 2019

Its power When properly tailored, Communication can immensenly support a central bank in being: Accountable You build-up confidence! Reliable Your voice is heard! Efficient Your message is paid heed!

Thank you for your attention!