The Bank of Latvia is the national central bank, integrated in the European System of Central Banks and representing the Republic of Latvia in foreign central banks and international currency institutions. The main objective of the Bank of Latvia is maintaining price stability in Latvia, as well as promoting Latvian general public’s perception of economic issues and carrying out other economic functions. The Bank of Latvia consults the Parliament and the Cabinet of Ministers on monetary policy issues.
The Bank is an independent entity not guided or instructed by the Government or other institutions. The structure, functions and operations of the Bank of Latvia are set out in the Law «On the Bank of Latvia». Also, based on the Law «On the Bank of Latvia», the Bank does not conduct any commercial activity. The authorised nominal capital of the Bank of Latvia is set to be 25 million lats, comprised of the State allotted resources and profit allocations of the Bank of Latvia.
The administration of the Bank of Latvia is conducted by a Council and a Board. The Council consists the Governor, the Deputy Governor and six members of the Council. Currently the Council is chaired by Ilmars Rimsevics who was appointed Governor of the Bank of Latvia on December 20, 2001. The Governor of the Bank of Latvia approves the Bank of Latvia’s structure and has the power to hire and dismiss its employees.
The Council makes decisions on behalf of the Bank of Latvia. The Board, established by the Council, executes the practical work and ensures the Bank’s management.