The principal changes in the Bank of Latvia's assets and liabilities on the 31 May 2007 balance sheet as compared to 30 April 2007 and the reasons for these changes.
- An increase of 148.2 million lats or 5.9% in foreign assets with the Bank of Latvia purchasing foreign currency and as a result of an increase in the balance of the government funds in the Bank of Latvia's foreign assets, as well as due to a change in the exchange rates of foreign currencies against the lats. The change in the lats equivalent of financial derivatives and a drop in the gold price had a dampening effect on foreign assets, decreasing the value of the gold reserves of the central bank.
- An increase of 3.7 million lats or 3.20% in foreign liabilities as a result of a rise in the lats equivalent of financial derivatives and a decrease in the European Commission funds in lats with the Bank of Latvia.
- A 118.4 million lats or 3 times fall in domestic assets, following a 117.6 million lats decrease in loans granted to credit institutions.
- A rise of 45.2 million lats or 3.2% in domestic liabilities as a result of 15.6 million lats and 29.1 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 15.5 million lats or 1.5% mainly due to the above changes.
- A decrease of 3.6 million lats in the capital and reserves as the revaluation account balance changed due to the securities market value and exchange rate fluctuations.
Head of the Macroeconomic Analysis Division
Monetary Policy Department
Bank of Latvia