Glossary of statistical concepts

The sub-section "Glossary of Statistical Concepts" of the section „Statistics” of the Bank of Latvia website comprises concepts that are frequently used in the sub-sections "Main indicators" and "Descriptions" and their definitions. These concepts are consistent with those of the European Central Bank and the International Monetary Fund.
M0

Monetary base: a monetary aggregate that is calculated on the basis of the Bank of Latvia's methodology and comprises the lats banknotes and coins issued by the Bank of Latvia and demand deposits of resident MFIs and financial institutions (overnight deposits) with the Bank of Latvia.
The definition of the concept is consistent with the methodology of the Bank of Latvia (briefly described in the Bank of Latvia's Annual Report).

M1

A narrow monetary aggregate comprising currency in circulation and overnight deposits held with MFIs by euro area residents.
The definition of the concept is consistent with the methodology of the European Central Bank.

M2

An intermediate monetary aggregate comprising M1 and deposits held with MFIs by euro area residents and redeemable at a period of notice of up to and including 3 months (i.e. short-term savings deposits) and those with an agreed maturity of up to and including 2 years (i.e. short-term time deposits).
The definition of the concept is consistent with the methodology of the European Central Bank.

M3

A broad monetary aggregate comprising M2 and marketable instruments, in particular repurchase agreements, money market fund shares/units, and debt securities with a maturity of up to and including two years issued by MFIs.
The definition of the concept is consistent with the methodology of the European Central Bank.

Manufacturing services

Processing, assembly, labelling, packing, ect. of goods owned by others. Include only those services after which the acquired goods are returned to the country from which they arrived for processing; only the value for the provided services is reported.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

MMF shares or units

see Investment fund shares or units

Monetary financial institutions (MFIs)

Central bank, credit institutions (except non-MFI credit institutions), credit unions, money market funds (MMFs) and other financial institutions whose business is to receive deposits or close substitutes for deposits from customers other than MFIs and, on their own account, to grant credits and invest in securities; as well as electronic money institutions, whose main business is issuing of electronic money.
The definition of the concept is consistent with Regulation (EU) 2021/379 of the European Central Bank of 22 January 2021 on the balance sheet items of credit institutions and of the monetary financial institutions sector (recast) (ECB/2021/2).

Monetary gold

Gold, which is a component of foreign reserves assets. Monetary gold is held by central bank or central government and it is subject to the effective control of those institutions.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Money market fund

An open-end investment fund meeting the following criteria:
1. the investment management corporation managing the fund shall make investments, preserving the fund's principal and providing a return in line with the interest rate on money market instruments, calculate the fund's net asset value and the price of its units on a daily basis, as well as sell and repurchase its units;
2. its investments shall be made in financial instruments with a residual maturity up to and including 2 years (for a short-term money market fund – up to and including 397 days), and time to the next interest rate reset date – up to and including 397 days);
3. the weighted average maturity of its investment portfolio shall be up to and including 6 months (for a short-term money market fund – up to and including 60 days) and the weighted average residual maturity shall be up to and including 12 months (for a short-term money market fund – up to and including 120 days).

Information for users of statistics

Information that contributes to a better understanding of the statistical data as well as to learning more about Latvijas Banka's planned statistical activities and the prepared statistics by familiarising oneself with the statistical programmes.

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