1st of January - Eurozone joined Latvia!

Scenario

Simultaneous implementation of the euro cash and non-cash money

In Latvia it is planned to apply the scenario envisaging simultaneous implementation of the cash and non-cash money. It means that on the euro changeover or € day the changeover to the euro will be performed in non-cash transactions, non-cash reserves on bank accounts will be automatically exchanged to the euro, and at the same cash euro will be issued

This scenario when euro banknotes and coins enter use on the same day is called Big bang scenario.

Euro changeover scenario

The euro is being introduced in the new European Union (EU) Member States according to the Big bang scenario.

For comparison - initially, when old EU Member States introduced the euro it was done gradually - at first the euro was introduced in non-cash transactions, however, within the three years transitional period cash was exchanged to the euro. This scenario when the changeover is performed gradually is called "Madrid scenario".

Figures of both scenarios

big_bang_eng

The euro changeover process consists of the following stages:

The dual circulation period of the lats and the euro

2 weeks following the € day

 

Period of the lats cash exchange to the euro

6 months following the € day - in all commercial institutions; for an unlimited period of time - in the Bank of Latvia

The period of dual price display

a quarter before and 6 months after the €-day

After the euro changeover:

  • Salaries and social benefits, pensions will be paid in the euro;
  • ATMs will be reprogrammed from the lats to euro dispensing regime;
  • Principle of continuity of contracts will be applied to contracts of bank loans etc, thus the existing contracts will not have to be amended or replaced with new ones;
  • All IT systems and money processing systems will be transformed to the euro;
  • Accounting will be performed in the euro;
  • Different payment automats - parking, coffee, ticket etc. will be gradually adjusted to accept the euro-coins.