The principal changes in the Bank of Latvia's assets and liabilities on the 30 June 2008 balance sheet as compared to 31 May 2008 and the reasons for these changes.
- A decrease of 16.5 million lats or 0.5% in foreign assets due to the decrease in the amount of Latvian Government funds and the equivalent of securities. Income from debt securities and a change in the amount of the European Commission funds had an increasing effect on the foreign assets.
- A decrease of 4.7 million lats or 4.3% in foreign liabilities due to the decrease in the lats equivalent of financial derivatives and a change in the foreign exchange rates.
- A drop of 21.7 million lats or 1.2% in domestic liabilities as a result of a 65.5 million lats decrease and a 43.2 million lats increase in the respective balances of the government funds and credit institutions' funds with the Bank of Latvia.
- On the liabilities side of the balance sheet, the amount of lats in circulation increased by 10.4 million lats or 1.1% mainly due to the above changes.
- A decrease of 0.7 million lats in the capital and reserves as the revaluation account balance decreased due to securities market value and foreign exchange rate fluctuations and retained earnings of the reporting year increased.
Monetary Policy Department
Head of Macroeconomic Analysis Division
Bank of Latvia