Frequently asked questions

When euro will be introduced in Latvia?

Official euro changeover date is not named, yet. State institutions in Latvia use this time to do all ground-work to ensure the euro changeover; enterprises are also advised to act in similar manner. The government will name the euro changeover date at least two years before the planned euro changeover day.

How to exchange money easier and more convenient?

Most convenient way - non-cash exchange. It is advisable to put all cash money reserves on your bank accounts before the euro changeover day. The lats reserves or remaining money on bank accounts will be automatically converted to the euro on the € day.

Does the lats exchange to the euro imply the price increase?

To prevent unjustified rise in prices traders and service providers will be obligated to display prices both in the lats and euro three months before and a year after the euro changeover. It will allow easier keeping up with prices. Service providers and traders could be called to account for incorrect price display.

How long time following the euro changeover it will be possible to use the lats?

To ensure convenient cash circulation following the euro changeover is it planned to introduce a one-month dual circulation period of both currencies - lats and euro. During this period it will be possible to pay for goods and services both in the lats and euro. A month after the euro changeover day euro-cash will become the only legal tender.

Will it be possible to exchange cash lats to the euro when it will not be possible to settle payments in the lats anymore?

Yes, half a year following the euro changeover it will be possible to exchange the lats to the euro in all commercial banks, but for unlimited period of time it will be done by the Bank of Latvia.

How to compare value of the lats and euro?

Nominal value of the lats is higher that the nominal value of the euro, so both income - salaries, pensions and others - and prices will be bigger in number. To ensure that citizens can follow prices and get used to the new currency companies will quote the prices in both lats and euro three months before the actual introduction of the euro.

What currency will the salary be paid in following the euro changeover day? How will they be calculated, rounded?

Salaries, as well as social benefits and pensions will be paid in euro following the euro changeover date they will be calculated according to strictly fixed exchange rate and rounded (two digits following the decimal point) in compliance with strictly mathematical principles (less than 5 - rounded down, more than five (including) - rounded up).

What will happen with loan and deposit contracts expressed in the lats?

The principle of contract continuity will apply to all existing contracts which means that there will be no need to change or replace contracts. Sums will be automatically re-calculated in euro applying transitional exchange rate. The same applies to other contracts signed with individuals or legal entities.

Will it be possible to use Latvian euro coins abroad?

Yes, euro coins issued in the euro area Member States can be used as a legal tender in all the euro area. It means that Latvian euro coins can be used in Portugal, Germany, Italy and other euro area countries, and vice versa - coins of other countries could be used in Latvia.

What are the gains from the euro changeover?

Exchange to the euro will allow consumers easier compare prices on goods and services in various countries, which, in turn, promotes competition among traders and service providers.

Single currency - euro - is advantageous for tourists. When travelling through the euro area countries, tourists do not have to exchange the currency of one country for that of another country It makes travelling more convenient and cheaper, because one does not have to exchange currencies and pay the associated commissions.

A one-month dual circulation period of the lats and the euro has been envisaged from the day of introducing the euro. What should seamen do who often spend even 6 months in their voyages, or representatives of other professions who permanently stay abroad?

The one-month dual circulation period of the lats and the euro is only one way how people can use cash lats in the exchange process. First of all it should be noted that non-cash lats in bank accounts will be automatically exchanged to the euro on the € day. Therefore, it is the most convenient way of currency exchange. Secondly, Latvia's National Euro Changeover Plan states that six months following the € day it will be possible to exchange cash lats to the euro in the Bank of Latvia, banks, the SJSC Latvijas Pasts, companies holding a licence issued by the Bank of Latvia for purchases and sales of cash foreign currency. For an unlimited period of time and amount after the €-day it will be possible to exchange the lats banknotes and coins in the Bank of Latvia.

What should people do with one and two lats collector coins, for example, with stork, mushroom and other images? Will it be possible to use these coins as a legal tender?

How will functions of the Bank of Latvia change after the euro changeover?

After Latvia will join the euro area the Bank of Latvia will participate in the euro area's monetary policy development, Governor of the Bank of Latvia as a European Central Bank Governing Council Member will participate in decision making processes providing arguments on the euro interest rates, monetary instruments in the euro area etc. That is why following the accession to the EU the Bank of Latvia gradually expands its macroeconomic analysis and research work covering also EU national economy development trends. The Bank of Latvia will continue to carry out its previous functions, inter alia, it will ensure smooth performance of payment system, cash circulation, preparation of finance statistics and balance of payments, work of Credit Register. 

Will the euro payment system be used for all interbank settlements?