Foreseen changes in foreign exchange reference rates statistics, as of euro adoption

Foreseen changes on the Bank of Lithuania website

Will the Bank of Lithuania publish on its website the euro foreign exchange reference rates?

On its website the Bank of Lithuania will publish daily the euro foreign exchange reference rates announced by the European Central Bank (ECB) and will publish monthly the other (non-ECB) euro foreign exchange reference rates. Seeking to provide time for the public and businesses to adapt to the changes, daily ECB euro foreign exchange reference rates will be available from 1 October 2014. Non-ECB euro exchange reference rates will be available from 30 December 2014. Please note that as of the euro adoption date, the value of EUR 1 in foreign currency units will be published. Currently, the value of 1 foreign currency unit in litas is published.

The ECB publishes daily the reference rates of the euro against more than 30 foreign currencies and is the primary source of information (see http://www.ecb.europa.eu/stats/exchange/eurofxref/html/index.en.html). The ECB’s euro foreign exchange reference rates are published every business day, in accordance to the regular procedure of their harmonisation between the central banks of the European System of Central Banks and the central banks of other countries, at 15:15 (Lithuania time) and indicate the position in the currency market at the time. The euro foreign exchange reference rates are published on the ECB website around 17:00 (Lithuania time), after that — on the Bank of Lithuania website. The ECB euro foreign exchange rates are published on the Trans-European Automated Real-Time Gross Settlement Express Transfer System (TARGET2) business days, i.e. daily, except for Saturdays and Sundays, New Year’s Day (1 January), Good Friday, Easter Monday, International Worker’s Day (1 May) and Christmas (25–26 December).

The Bank of Lithuania will publish monthly more than 50 other than the ECB’s euro foreign exchange reference rates. Other (non-ECB) euro foreign exchange reference rates will be published monthly on the penultimate business day.

Will the amount of published foreign exchange reference rates decrease?

The total amount of the euro foreign exchange reference rates published by the ECB and the Bank of Lithuania will not decrease. Taking into account the external trade statistics and trade in currency on the currency market, the foreign currency list shall include three additional currencies, currently not published: Nigerian naira (code NGN), Mauritius rupee (code MUR) and Ghanaian cedi (code GHS). As of 1 January 2015 the International Monetary Fund’s special drawing rights (SDR) reference rate will not be published. Information on SDR will is constantly available on the website http://www.imf.org/external/np/fin/data/param_rms_mth.aspx.

Will businesses have to individually calculate the euro foreign exchange reference rates in accordance to the amendment, which shall enter into force on the date of euro adoption, of Article 5 of the Republic of Lithuania Law on Accounting?

The Bank of Lithuania will form daily the euro foreign exchange reference rates in accordance to Article 5 of the Republic of Lithuania Law on Accounting, which shall enter into force on the date of euro adoption in Lithuania. These reference rates will first be published from 31 December 2014. Lithuanian institutions initiated amendments to Article 5 of the Law on Accounting (http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=483394), seeking to define the application of foreign exchange reference rates in accounting after the euro adoption. Seeking to satisfy the need of economic agents to conveniently receive information, the Bank of Lithuania, on the basis of the foreseen amendments to the law, will form from the ECB and the Bank of Lithuania-published euro foreign exchange reference rates the euro foreign exchange reference rates necessary for reflecting economic processes and operations in accounting.

Will the litas foreign exchange reference rates be available on the Bank of Lithuania website after the euro adoption?

From 1 January 2015, when the litas foreign exchange reference rates will no longer be published, their historical data will continue to be available on the Bank of Lithuania website for an unlimited time.

 Are any changes related to publishing of litas foreign exchange reference rates projected?   

Yes. Changing of the software will slightly change the depiction of litas foreign exchange reference rates on the website of the Bank of Lithuania. The principles of fixing litas foreign exchange reference rates will not change. Following the existing Rules on Fixing the Exchange Rate of the Litas and Foreign Currencies, the exchange rates of the litas against foreign currencies are fixed on business days and become effective on the next business day following their fixing, and are effective until new rates come become effective. It used to be a routine practice that litas foreign exchange reference rates, fixed on Thursdays and becoming effective on Fridays, on the Bank of Lithuania website were only published until Fridays, although it was already known that they would be effective for three days, i.e. Friday, Saturday and Sunday. The Saturday and Sunday information about litas foreign exchange reference rates was depicted then publishing litas foreign exchange reference rates fixed for Monday. During the preparations for the euro adoption and change of the software, the litas foreign exchange reference rates fixed on Thursdays and becoming effective on Fridays will be provided immediately presenting information to be effective on Friday, Saturday and Sunday. While this is only a depiction change, at first it may be somewhat unusual for the users.   

 

Foreseen changes in the Bank of Lithuania’s XML Web Services

Will the foreign exchange reference rates be provided with the help of the XML Web Services?

With the adoption of the euro, new XML Web Services shall be provided. Their specification shall be published on the Bank of Lithuania website (http://www.lb.lt/webservices/default_En.htm) in the section Euro foreign exchange reference rates. All services will be functional from 1 October 2014. In using the service, the amount of foreign currency for EUR 1 will be available, latest euro foreign exchange reference rates, euro foreign exchange reference rates published on a particular date and selected foreign exchange reference rates over a selected period. It should be noted that from the euro adoption the value of EUR 1 in foreign currency units will be published. Currently, the value of 1 foreign currency unit in litas is published.

What are the major changes in the XML Web Services?

With the adoption of the euro, the euro foreign exchange reference rates will accessible based on two types, their date of publication and in accordance to Article 5.2 of the Law on Accounting, which shall enter into force on the date of euro adoption in Lithuania (the XML Web Services specification will be available on the Bank of Lithuania website (http://www.lb.lt/webservices/default_En.htm) in the section Euro foreign exchange reference rates). In order to get the necessary euro foreign exchange reference rate, the exchange rate type must be specified in the parameters (parameter — tp). The type EU means exchange rate by date of publication, while the type LT — exchange rate in accordance to the Law on Accounting

Will the litas foreign exchange reference rate be available through the XML Web Services after the euro adoption?

With the adoption of the euro, the litas foreign exchange reference rates, with the help of the XML Web Services, will be available until 31 December 2015. Queries will return historical litas foreign exchange reference rates, while in indicating a date after 31 December 2014 or in case of error, a negative number is returned.

Are other changes projected in using the XML Web Services? 

Yes. In changing the software, the exchange rate of the litas against the litas will no longer be provided and this will be indicated as an error (value –1). Before the change, when indicating the "LTL" currency, the value "1" is returned, i.e. LTL 1 = LTL 1. As the litas is not foreign but national currency (as the euro will be soon), in order to avoid any misunderstandings, the possibility of such a query has been eliminated. 

If you have any questions or suggestions related to the euro foreign exchange reference rates, please contact us by e-mail b...@lb.lt.


 

Updated 29/09/2014