The better we will prepare for the euro changeover, the less will be possible inflation growth

Sanita Bajāre, 13.12.2008

Ms.Sanita Bajāre
Euro project manager

The fact that once we will use the euro as a legal tender instead of the lats became clear for us already on May 1, 2004 when Latvia became a full-pledged member of the European Union. Latvia's population expressed their support to the euro changeover at national referendum on membership. The Treaty of Accession also envisages that Latvia will join the Economic and Monetary Union (EMU) and introduce the euro, as soon as it will comply with several economic criteria - the so cold Maastricht criteria.

All the Latvia's population will have to participate in the euro changeover process - every money user. Institutions involved in the currency exchange process will be responsible for spreading information also among those 10% of population who stand „remotely" from financial services, to ensure that every individual receives information about money security features and other practical aspects, and to guarantee that everyone will have possibility to exchange money and carry out other financial operations timely and in most convenient way. But people also have to be active and follow the information to ensure that currency exchange will not be hindered by obstacles created on their own or obstacles that were possible to avoid.

The same applies to inflation expectations which are often arising from the lack of information and completely normal wish of traders to increase prices if the consumer is ready to pay more, and the competitor also increases prices. It is everyone's duty not to facilitate the process which allows market members to increase princes under the cover of currency exchange. So we have defined our common goals in the following period - ensure continuous explanation of the euro changeover process and related activities. The euro changeover is not a goal of one group - state, entrepreneurs or citizens; it is our common project.