The Latvian Lati (LVL) served as Latvia’s official currency before the country adopted the euro.

Latvia, a country in Northern Europe, relied on the Lats as a vital part of its economy for many years.

Today, Latvia’s economy thrives mainly in the service sector, allowing its citizens to enjoy a better work-life balance than many other countries.

Read on to explore more about this beautiful country.

What is the Latvian Lats (LVL)?

Latvia used the Latvian Lati, abbreviated as LVL, as its currency until 2014, when the country switched to the euro.

The symbol “Ls” identified the currency before the digits, and “s” indicated santïm after the digits.

For example, people wrote 100 Latvian lats as Ls100 and 100 santïm as 100s. The plural of lats is lati. The Bank of Latvia managed it.

People used the Lats for everything, from daily shopping to large business transactions, which kept Latvia’s economy stable for many years.

History of the Latvian Lati

People often call Latvia the “Baltic tiger,” a nickname that reflects the country’s high development rates between 2000 and 2007.

The Latvian Lati has a rich history that closely connects with Latvia’s journey toward independence.

Latvia introduced the Lats in 1922 after the country gained independence from the Russian Empire.

At that time, Latvia created its currency to build its economy, and the Lats became a symbol of national pride.

However, during World War II, the Soviet Union took control of Latvia, and the country stopped using the Lats, replacing it with the Soviet ruble.

Latvia continued using the ruble for many decades until the country regained its independence in 1991.

In 1993, Latvia brought back the Lats to strengthen its economy and mark its new era of freedom.

The Lats remained the country’s currency for over two decades until Latvia joined the European Union and switched to the euro in 2014.

Subdivisions and Denominations

The Latvian Lati divides into 100 santīmi. Coins appeared in several denominations, including 1, 2, 5, 10, 20, and 50 santīmi, along with 1 and 2 Lats coins.

Each coin displayed a unique design featuring important symbols from Latvian culture.

The banknotes came in various values: 5, 10, 20, 50, 100, and 500 Lats.

These banknotes displayed beautiful designs, often featuring images of famous Latvians, historical figures, or national landmarks.

Exchange Rate and Value

Before Latvia adopted the euro, the Latvian Lati maintained a strong value. Below shows how the Lats compared to other currencies during its final years:

• 1 USD equaled about 0.65 LVL
• 1 EUR equaled about 0.70 LVL

Once Latvia adopted the euro, people exchanged their Lats for euros at a fixed rate of 1 EUR = 0.702804 LVL.

Economy and Challenges

Latvia has a growing economy that relies on industries like agriculture, manufacturing, and services.

While Latvia used the Lats, the currency helped the country develop economically and recover from Soviet rule.

However, the Lats faced challenges, especially during the global financial crisis of 2008, which hit Latvia hard.

To strengthen its economy and build better connections with Europe, Latvia decided to adopt the euro.

This move stabilized the country’s finances and boosted trade with other European countries.

Can You Still Exchange Lati for Euros?

Yes, you can still exchange Latvian Lati for euros.

Latvijas Banka (Latvia’s central bank) exchanges both lats banknotes and coins indefinitely at a fixed rate of 1 EUR = 0.702804 LVL.

This service allows people who still possess lats to convert them into euros free of charge.

Is the Lats Legal Tender Now?

No, the Latvian Lati stopped serving as legal tender when the euro officially replaced it on January 1, 2014.

From that date forward, people could only use the euro for payments in Latvia.

Conclusion

The Latvian Lati (LVL) marked a key part of Latvia’s economic history, symbolizing both the country’s independence and its journey toward modern development.

From its reintroduction in 1993 to its retirement in 2014, the Lats supported economic stability and growth.

Today, Latvia uses the euro, but the Lats remains an important symbol of the country’s history and resilience.