A report on the progress towards Latvia joining the TARGET2-Securities platform (T2S) created by the Eurosystem was presented to the Council of Latvijas Banka today.
Latvijas Banka expects to join the T2S platform on 18 September 2017 and preparations consisting of various tests, including those with the involvement of market participants, are well underway and proceed as planned. Currently, there are no obstacles for the participants of the Latvian securities market who will participate in the settlements of the joint Baltic central securities depository to join the T2S platform in mid-September, as scheduled.
The T2S platform enables to provide standardised securities and cash settlement services to the European central securities depositories and their customers in an integrated technical environment in the delivery versus payment mode. The European central securities depositories migrate to the T2S platform in several waves. In March 2017, on average, 499 thousand transactions totalling 735 billion euro were settled in T2S every day. This represents 90% of the targeted number of transactions to be reached after completing the migration of all securities markets.
The Eurosystem continues to improve and develop the T2S platform. Latvijas Banka is also actively involved in the process.
Latvijas Banka, acting in the public and economic interest, carries out several tasks significant for each and every inhabitant, financial markets and the public at large:
- participates in the formulation and implementation of the euro area's monetary policy;
- issues cash in Latvia and participates in ensuring the cash circulation process in the euro area;
- discharges the function of the central national currency authentication centre;
- maintains the interbank payment systems' infrastructure and promotes their smooth operation;
- manage the foreign reserves and other financial investments;
- acts as the financial agent of Latvia's government and provides financial services to other market participants;
- compiles and publishes financial, monetary statistics and balance of payments statistics;
- maintains and develops the Credit Register;
- acts as an advisor to the Parliament and Cabinet of Ministers of the Republic of Latvia on monetary policy issues and other issues related to Latvijas Banka operation.
Latvijas Banka promotes analysis and research of macroeconomic and financial issues, thereby laying a secure foundation for professional activities in these areas. The role of the leading industry expert helps Latvijas Banka raise public awareness of the development of the economy and the monetary system, the current situation and the economic policy being pursued. Latvijas Banka also takes an active part in educating the general public on various economic topics.