Overview

The Latvian Lats (LVL) was the official currency of Latvia from 1922 to 1940, then 1993 to 2014. It was issued by the Bank of Latvia. The Lats was initially pegged to gold in the 1920s, then adopted a floating regime post-Soviet independence. It was fixed to the SDR in 1994, then to the Euro from 2005 onward. The currency was replaced by the Euro in January 2014, making Latvia the eighteenth nation to adopt the euro.

Replacement History

The Latvian Lats was officially replaced by the Euro (EUR) on January 1, 2014. Latvia became the second Baltic state to adopt the euro, following Estonia (2011). The final exchange rate at replacement: 1 EUR = 0.702804 LVL. The old lats banknotes and coins were withdrawn from circulation, with a two-week exchange period for notes and coins.

Final Denominations (at demonetization)

Final Coins: 1, 2, 5, 10, 20, 50 Santims; 1, 2 Lati

Final Banknotes: 5, 10, 20, 50, 100 Lati

Withdrawal: Completed by February 28, 2014; old currency no longer in circulation

Demonetization Context

The euro adoption was a cornerstone of Latvia's Western European integration following Soviet independence (1991). The currency had already been pegged to the euro for nearly a decade, facilitating the transition. The adoption was smooth, reflecting Latvia's commitment to European integration despite regional tensions with Russia.

Historical Exchange Rates

  • 1922: 1 Lats = 0.18g gold (post-WWI stabilization)
  • 1991: Post-Soviet independence; currency reintroduction; hyperinflation period
  • 1994: 1 USD = 0.56 LVL (stabilization period; SDR peg)
  • 2005: Fixed to EUR as Latvia prepared for euro adoption
  • 2013: 1 EUR = 0.702804 LVL (final fixed rate)
  • 2014: Replaced by EUR at 1 EUR = 0.702804 LVL

Economic Context at Demonetization

At the time of euro adoption in 2014, Latvia was experiencing:

  • Post-financial crisis recovery (2008-2009 crisis experienced)
  • Economic growth resumption (3%+)
  • Inflation stabilization
  • EU membership integration deepening
  • Regional economic recovery leadership
  • NATO security integration

Notable Characteristics

  • Historical currency: Long history (1922–1940, reintroduced 1993); interwar stability symbol
  • Soviet legacy: Currency discontinued during Soviet occupation (1940-1991); post-independence reintroduction
  • Financial crisis resilience: Survived 2008-2009 financial crisis; maintained euro convergence course
  • Currency collectibles: Both pre-Soviet and post-Soviet lats notes/coins collectible; historical significance

Legacy

The Latvian Lats is now an obsolete currency. Its replacement by the Euro symbolized Latvia's complete integration into Western Europe and the eurozone, completing the Baltic states' euro adoption sequence. Latvia no longer uses its own currency; it is a full member of the Economic and Monetary Union.