Notes to the Bank of Latvia Balance Sheet as at 31 July 2011

The principal changes in the Bank of Latvia's assets and liabilities on the 31 July 2011 balance sheet as compared to 30 June 2011 and the reasons for these changes.

• A decrease of 33.3 million lats or 0.9% in foreign assets mostly on account of the selling of foreign currency by the Bank of Latvia and a reduction in the funds deposited in foreign currencies by the Latvian government.
• An increase of 24.4 million lats or 91.4% in foreign liabilities mostly on account of a rise in the funds deposited by the European Commission and foreign banks.
• A decrease of 95.1 million lats or 3.6% in domestic liabilities mostly due to a drop of 168.7 million lats or 12.1% in the balance of credit institution funds. Increases of 68.7 million lats or 6% and 4.8 million lats or 6.1% in the respective balances of the Latvian government and other financial institution funds had an increasing effect on domestic liabilities.
• The amount of lats in circulation has expanded by 35.2 million lats or 3.7%.
• An increase of 2.2 million lats or 0.7% in the capital and reserves mostly on account of the interest income received. The result of the revaluation of securities had a decreasing effect.