The principal changes in the Bank of Latvia's assets and liabilities on the 31 March 2008 balance sheet as compared to 29 February 2008 and the reasons for these changes.
- An increase of 175.9 million lats or 6.1% in foreign assets, as the Government's proceeds from the issue of eurobonds were included in the Bank of Latvia's foreign assets, the amount of the European Commission funds increased and the Bank of Latvia purchased foreign currency. A change in the lats equivalent of financial derivatives and securities as well as a drop in the gold price had a decreasing effect on foreign assets.
- A rise of 6.1 million lats or 5.7% in foreign liabilities mostly due to an increase in the European Commission funds with the Bank of Latvia.
- A rise of 185.0 million lats or 11.3% in domestic liabilities as a result of 159.5 million lats and 24.9 million lats increases in the respective balances of the credit institutions' funds and government funds with the Bank of Latvia.
- On the liabilities side of the balance sheet, the amount of lats in circulation decreased by 8.3 million lats or 0.9% mainly due to the above changes.
- A decrease of 7.0 million lats in the capital and reserves as the revaluation account balance changed and the retained earnings of the reporting year decreased.
Head of the Macroeconomic Analysis Division
Monetary Policy Department
Bank of Latvia