avoiding the “original sin” of excessive foreign currency borrowings by domestic entities, particularly the sovereign;  v.  prudential regulations to prevent excessive dollarization of balance sheets of financial sector intermediaries, particularly banks;  vi. cautious approach to liability dollarisation by domestic entities and  vii. significant liberalization of permissible avenues for outward investments for domestic entities.
Therefore, this is an issue to which the Bank of Latvia pays particularly close attention. In the domestic settlement systems, all interbank settlements are conducted through the Bank of Latvia. Currently there are two systems in operation at the Bank of Latvia and both are used for interbank settlement. From November 1998, the Electronic Clearing System replaced the previous, paper-based clearing system.