The principal changes in the Bank of Latvia's assets and liabilities on the 31 May 2011 balance sheet as compared to 30 April 2011 and the reasons for these changes.
- An increase of 23.5 million lats or 0.6% in foreign assets mostly as a result of growth in the funds deposited in foreign currencies by the Latvian government, with foreign exchange interventions having a decreasing effect.
- A fall of 4.1 million lats or 13.4% in foreign liabilities mostly on account of a decrease in the funds deposited by the European Commission, with the result of the revaluation of financial instruments having an increasing effect.
- An increase of 15.5 million lats or 0.6% in domestic liabilities mostly due to a rise of 48.7 million lats or 3.3% in the respective balance of credit institution funds while decreases of 21.7 million lats or 2.4% and 11.4 million lats or 80.3% in the respective balances of Latvian government funds and other domestic liabilities had a dampening effect.
- The amount of lats in circulation remained broadly unchanged over the month.
- An increase of 11.7 million lats or 4.2% in capital and reserves predominantly on account of the result of the revaluation of foreign currencies, gold and securities, as well as interest income received. Conversely, the result gained from investment in financial instruments had a decreasing effect.
J. Caune
Chief Accountant
Bank of Latvia