By running monetary policy to keep the purchasing power of the money they issue stable, they can provide an environment conducive to growth in output and employment. By doing that, they also provide an environment which avoids the capricious redistribution of income and assets which is so often the consequence of inflation.
There are virtually no restrictions on cash and capital flows to and from Latvia. The Bank of Latvia ensures the convertibility of the lats by buying and selling unlimited amounts of the SDR basket currencies to banks at their request. In 2000, the Bank of Latvia introduced the interbank automated payment system (SAMS), which is a real-time gross settlement system.