The Bank of Latvia » For All » Information to the Public » Commentary » Commentary for the newspaper "Telegraf" on the structure of Bank of Latvia reserves
Commentary for the newspaper "Telegraf" on the structure of Bank of Latvia reserves
16.10.2009
As of the lats' peg to the euro, the structure of investment of Bank of
Latvia currency reserves has been as follows: 50% in euro, 40% in U.S.
dollars, and 10% in Japanese yen. The
Bank of Latvia invests its foreign reserves in safe and liquid (quick
to sell) financial instruments, mostly in the debt securities emitted
by eurozone governments, U.S. government, and international
organizations as well as high quality debt securities emitted by banks
and businesses.
The structure of the reserves is based on in-depth analysis; it is
optimal for Bank of Latvia's investment with a view to minimizing risks
and maximizing returns. Analysis of the financial market is of course
conducted on a regular basis, yet currently there are no plans to
change the reserve structure.The currency risk is covered by applying
the relevant financial instruments to soften the impact of the
fluctuations of the U.S. dollar and Japanese yen's exchange rates.
Press Service of the Bank of Latvia
