ABSTRACT
The "Law of the Bank of Latvia" granted the bank independence from government control. The Board of Governors of the Bank of Latvia convenes once every two months. At the meetings the board discusses monetary policy and assigns quarterly quantitative targets, and issues central bank directives for the commercial banks. Although the Latvian economy will continue to be significantly influenced by events to the east, it would be foolish to base the development of its banking system on permanent speculation in the countries of the former Soviet Union. In 1993, however, Latvian exports were signilicantly larger than imports, and there was an inflow of foreign exchange on both the account and the capital account in the balance of payments. Latvia joined the International Monetary Fund, after extensive discussions and a review of its economic situation, on May 19,1992, with a total quota of 61 SDR million.
