The Bank of Latvia

[x]

For your convenience, please select the section which will be the first to open when the website www.bank.lv is opened in the future..

You have selected the section

Should you wish to change your selection, open another section of your choice and click on the link "Next time start with...". Should you have any inquiries, please contact the webmaster at webmaster@bank.lv.

Bank of Latvia

Since January 2005 Latvijas Banka unilaterally supports the lats and euro exchange rate fluctuations within ±1% band around the central or euro peg rate, which is 0.702804 lats for one euro. This means that the interbank market rate can differ, and it usually does differ, from the central rate but cannot go beyond the 1% margin of 0.7098 and 0.6958 EUR/LVL respectively in either direction. When the market rate reaches either of the band's margins, Latvijas Banka automatically intervenes: responding to the requests of commercial banks the central bank buys or sells the euro for the lats at the border rate.

A good example of the Latvian foreign exchange market mechanism is the year 2007, which was characterised by market fluctuations due to jittery sentiments at its beginning. In order to ensure the stability of the lats exchange rate against the euro, in March and April of 2007, Latvijas Banka, by buying lats, sold 332.1 million euro (235.7 million lats) to commercial banks. However, in the following months the bank demand for lats exceeded the supply and Latvijas Banka, by selling lats, bought 568.6 million euro (395.6 million lats).

Latest data on buying and selling of foreign currency (euro)
(a positive number - the Bank of Latvia buys foreign currency; a negative number - the bank of Latvia sells foreign currency)

02.08.-06.08.2010 Bank of Latvia's net foreign exchange interventions 77.0 mill euro
09.08.-13.08.2010 Bank of Latvia's net foreign exchange interventions 50.0 mill euro
16.08.-20.08.2010. Bank of Latvia's net foreign exchange interventions 0.0 mill euro
23.08.-27.08.2010 Bank of Latvia's net foreign exchange interventions 0.0 mill euro


Archives
2007-2010 (xls 38 KB)