The principal changes in the Bank of Latvia's assets and liabilities on the 31 January 2011 balance sheet as compared to 31 December 2010 and the reasons for these changes.
- A decrease of 199.6 million lats or 4.9% in foreign assets mostly on account of a reduction in the funds deposited in foreign currencies by the Latvian government and the Bank of Latvia interventions by selling foreign currency.
- A fall of 4.9 million lats or 11.4% in foreign liabilities mainly as a result of a change in the lats equivalent of financial instruments, while the growth in the funds deposited by the European Commission had an increasing effect.
- A decrease of 149.5 million lats or 5.3% in domestic liabilities mostly due to a drop of 184.0 million lats or 10.9% in the respective balance of credit institution funds. Increases of 27.0 million lats or 2.5% and 7.0 million lats or 12.3% in the respective balances of government and other financial institution funds had an increasing effect on domestic liabilities.
- The amount of lats in circulation decreased by 32.2 million lats or 3.4%.
- A decrease of 13.9 million lats or 4.7% in the capital and reserves predominantly on account of the result of the revaluation of foreign currencies and securities. Conversely, interest income and the result gained from investment in financial instruments had an increasing effect.
Jānis Caune
Chief Accountant
Bank of Latvia