After the changeover from the lats to the euro, the functions of the Bank of Latvia (BoL) as the national central bank have not changed, but its sphere of activity has broadened, first of all regarding the monetary policy decision making, having an equal say in deciding on the common monetary policy in the euro area, which consists of all those countries that have adopted the euro, as well as performing the necessary macroeconomic analysis.
The central bank in Latvia also performs other tasks that are important for the functioning of the economy and its bloodline, the financial system: the BoL ensures the circulation of cash currency and provides the environment for the functioning of safe interbank payment systems; it manages the foreign currency and gold reserves that cover the relevant liabilities, including currency in circulation, the deposits by the government and commercial banks with the central bank. The BoL also compiles the balance of payments and financial statistics.
After joining the Eurosystem the collaboration between the BoL as a participant in the Eurosystem and the European Central Bank (ECB) and other central banks of the euro area has acquired more intensity. As of 1 January 2014, Governor of BoL is a member of the ECB Council. The Council meets twice a month and in these meetings euro area monetary policy decisions are made and other important issues resolved.