Latvijas Banka is the central bank of Latvia – an independent institution and a participant of the Eurosystem. The primary objective of Latvijas Banka is the same as that of the central banks of other euro area countries and the ECB – price stability (or a moderate consumer price increase). This is an essential precondition for a strong and growth-oriented economy. To achieve that, Latvijas Banka participates in the formulation of the Eurosystem's monetary policy, related decision-making and implementation. Furthermore, acting in the public and economic interests, Latvijas Banka carries out the following main tasks within the Eurosystem:
- manages foreign reserves;
- issues cash in Latvia and participates in ensuring the cash circulation process in the euro area;
- promotes smooth operation of the payment systems;
- compiles financial and monetary statistics, as well as balance of payments statistics;
- maintains and develops the Credit Register.
Latvijas Banka promotes analysis and research of macroeconomic and financial issues, thereby laying a secure foundation for professional activities in these areas. The role of the leading industry expert helps Latvijas Banka enhance the public understanding of the fundamentals of the economy and the monetary system and the current situation.