The principal changes in the Bank of Latvia's assets and liabilities on the 30 November 2010 balance sheet as compared to 31 October 2010 and the reasons for these changes.

  • A decrease of 11.1 million lats or 0.3% in foreign assets mostly on account of the Bank of Latvia interventions by selling foreign currency and a reduction in the funds deposited in foreign currencies by the European Commission. A rise in the funds deposited in foreign currencies by the Latvian government had an increasing effect on the foreign assets.
  • A pickup of 9.5 million lats or 17.3% in foreign liabilities mainly as a result of a change in the lats equivalent of financial instruments, while the change in the amount of funds deposited by the European Commission had a decreasing effect.
  • A decrease of 23.9 million lats or 0.8% in domestic liabilities mostly due to a drop of 72.8 million lats or 5.2% in the respective balance of government funds. Increases of 41.4 million lats or 2.6% and 7.0 million lats or 14.2% in the respective balances of credit institution funds and other financial institution funds had an increasing effect on domestic liabilities.
  • The amount of lats in circulation expanded by 3.4 million lats or 0.4%.
  • A decrease of 0.4 million lats or 0.1% in the capital and reserves mostly on account of the result of the investment in financial instruments and the revaluation of securities, while interest income and the result of the revaluation of foreign currencies had an increasing effect.

I. Medne
Deputy Chief Accountant
Bank of Latvia