The principal changes in the Bank of Latvia's assets and liabilities on the 31 July 2010 balance sheet as compared to 30 June 2010 and the reasons for these changes.
- An increase of 21.9 million lats or 0.6% in foreign assets, mostly on account of a rise in the funds deposited in foreign currencies by the Latvian government and interest income. A change in domestic credit institutions' foreign currency deposits had a decreasing effect on foreign assets.
- A rise of 2.9 million lats or 15.8% in foreign liabilities, mostly on account of an increase in the funds deposited by the European Commission, with a change in the lats equivalent of financial instruments having a decreasing effect.
- A drop of 3.5 million lats or 0.1% in domestic liabilities as a result of a 53.8 million lats decrease in the government funds with the Bank of Latvia and 43.9 million lats and 7.2 million lats increases in the respective balances of the credit institutions' funds and other financial institutions' funds with the Bank of Latvia.
- On the liabilities side of the balance sheet, the amount of lats in circulation increased by 18.1 million lats or 2.2% mainly due to the above changes.
- An increase of 4.5 million lats or 1.6% in the capital and reserves, mostly on account of the interest income earned.
Vilnis Purvins
Deputy Head of Macroeconomic Analysis Division
Monetary Policy Department
Bank of Latvia