Kazāks: "Our objective is to become the best-performing central bank in Northern Europe"

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Latvijas banka, the Latvian central bank (LB), has published its annual report on its activities in 2020, which is now available online.

Profits for 2020 reached 26.6 million euros, 70% of which will be added to the central government coffers with the remainder being transferred to the central bank's own capital reserves.

As regards cash, in 2020 the central bank processed 133.7 million banknotes received from credit institutions; of them, 8.7% or 11.6 million were replaced with new ones.

2020 central bank figures
2020 central bank figures

Mārtiņš Kazāks, Governor of Latvijas Banka, said in his foreword to the report that important things have been accomplished despite the Covid-19 pandemic and the enforced changes that entailed.

"The record-low interest rates maintained by central banks encouraged governments to provide unprecedented crisis support to households and businesses. Accommodative monetary policies helped the global economy to steer confidently through this raging storm," said Kazāks.

"The past geopolitical choices in favour of joining the European Union and the euro area have meant that, for the first time in its history, Latvia has been able to counter the crisis independently: we can make our own decisions and define our economic policy preferences, we enjoy free access to financial markets at very good prices, benefiting from the favourable financing conditions," he said.

"Our objective is to become the best-performing central bank in Northern Europe, working in the interests of Latvia's community and contributing to the Eurosystem's development.

"Latvijas Banka is primarily focussed on meaningful and active participation in the shaping and implementation of the Eurosystem's monetary policy and on being Latvia's leading economic and financial competence centre, contributing to analysis-based decisions aimed at sustainable economic development and safeguarding the stability of the financial system.

"We are building and supporting a safe, effective and innovative payment infrastructure, strengthening the economic and financial literacy of the community, we are a modern, open and effective national central bank", added Governor Kazāks.

He also pointed out the upcoming merger with the Financial and Capital Market Commission, the national financial resgulator which will result in "a fully integrated institution that will be building a stronger and more powerful backbone of Latvia's financial sector."

The Annual Report of Latvijas Banka for 2020 is available at www.bank.lv, though the English-language version has yet to be added. Financial statements of Latvijas Banka for 2020 are published separately on the website of Latvijas Banka together with an independent auditors' report.

Latvijas banka report for 2020
Latvijas banka report for 2020

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