The principal changes in the Bank of Latvia's assets and liabilities on the 30 April 2008 balance sheet as compared to 31 March 2008 and the reasons for these changes.
- A decrease of 8.2 million lats or 0.3% in foreign assets due to the decrease in the equivalent of securities and financial derivatives, the amount of Latvian Government funds and the gold price. Foreign currency purchases by the Bank of Latvia and the income from debt securities had an increasing effect on the foreign assets.
- A drop of 1.8 million lats or 1.6% in foreign liabilities due to the decrease in the European Commission funds with the Bank of Latvia and the lats equivalent of financial derivatives.
- A drop of 10.5 million lats or 0.6% in domestic liabilities as a result of a 29.3 million lats decrease in the government funds with the Bank of Latvia and 14.5 million lats and 4.3 million lats increase 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 42.6 million lats or 4.4% mainly due to the above changes.
- A decrease of 38.6 million lats in the capital and reserves due to the appropriation of the Bank of Latvia's profit for 2007, changes in the revaluation account balance as a result of securities market value and exchange rate fluctuations, as well as a decrease in the retained earnings of the reporting year.
Head of the Macroeconomic Analysis Division
Monetary Policy Department
Bank of Latvia