Official conversion rate and periods of lats-to-euro transition
Official conversion rate 1 EUR = 0.702804 LVL
On 9 July 2013, the European Union ECOFIN Council took the final decision on Latvia's full participation in the Economic and Monetary Union (EMU) as of 1 January 2014 and irrevocably fixing the lats to the euro exchange rate. Importantly, the Bank of Latvia determined a fixed lats and euro conversion rate of 1 EUR = 0.702804 LVL already on 30 December 2004 in accordance with the Government approved plan for Latvia’s preparation for full membership in the Economic and Monetary Union, and it has been in effect as of 1 January 2005 and has not been changed since.
Periods of cash transition
As of 1 January 2014 the euro will become Latvia’s official currency. For two weeks, till 14 January 2014, it will be possible to pay in lats, but the balance of any purchase will be issued in euro. The only exception will be public transport where if one pays in lats, the balance will be issued in lats and if one pays in euro – the balance will also be issued in euro.
The population will have broad and extended possibilities to exchange lats to euro after 1 January 2014 according to the official exchange rate and with no service charges:
- For three months, from 1 January 2014 till 31 March 2014, in 302 (out of 618) branches of the Latvian Post Office in locations where there are no bank services available.
- For six months, from 1 January 2014 till 30 June 2014, in all commercial banks.
- Forever in the three Bank of Latvia branches.
Period of dual price display
To ensure that people can follow the prices and get used to the new currency, prices must be quoted both in lats and euro from 1 October 2013 until 30 June 2014. Prices in euro will be calculated according to the official conversion rate and strictly follow mathematical principles.
