The principal changes in the Bank of Latvia's assets and liabilities on the 31 December 2010 balance sheet as compared to 30 November 2010 and the reasons for these changes.
- A decrease of 193.7 million lats or 4.5% in foreign assets mostly on account of the Bank of Latvia interventions by selling foreign currency.
- A decrease of 22.4 million lats or 34.6% in foreign liabilities mostly on account of a change in the lats equivalent of financial instruments.
- A decrease of 222.3 million lats or 7.3% in domestic liabilities mostly due to a drop of 245.8 million lats or 18.5% in the respective balance of government funds, with the increase of 24.0 million lats or 1.4% in the respective balance of credit institution funds having an increasing effect.
- The amount of lats in circulation expanded by 49.0 million lats or 5.5%.
- An increase of 2.2 million lats or 0.8% in the capital and reserves mostly on account of the received net interest income, the realised result of the investment in financial instruments as well as the result of the revaluation of foreign currencies. The result of the revaluation of securities had a decreasing effect.
Janis Caune
Chief Accountant
Bank of Latvia