The Latvian Lati served as the official currency of Latvia, a Baltic nation in Northern Europe, until it was replaced by the Euro.

Introduced in 1922, the Latvian Lati took the place of the Latvian Ruble at an exchange rate of 1 Lati for 50 Rubles. The Bank of Latvia was tasked with issuing and managing the Latvian Lati.

Latvia became a member of the European Union in 2004 and adopted the Euro as its official currency on January 1, 2014. The Latvian Lati was exchanged for the Euro at a fixed rate of 1 Euro to 0.702804 Lati. This transition to the Euro was part of Latvia’s commitment to the European Union and its economic integration with the Eurozone.

Prior to its replacement, the Latvian Lati was divided into 100 smaller units known as santīms. Coins were available in denominations of 1, 2, 5, 10, 20, and 50 santīms, as well as 1 and 2 Lati. Banknotes were issued in denominations of 5, 10, 20, 50, and 100 Lati.

Latvia’s economy is largely driven by services, industry, and agriculture. The services sector, which includes finance, tourism, and trade, constitutes the largest portion of the country’s GDP. Industry, encompassing manufacturing, construction, and mining, also plays a vital role in the economy. Agriculture, especially the production of grains, vegetables, and livestock, is essential for providing employment and supporting rural communities.

The adoption of the Euro as Latvia’s official currency has enhanced trade and investment within the Eurozone, allowing for easier access to capital markets and lowering transaction costs. However, this also means that Latvia must comply with the fiscal and monetary policies established by the European Central Bank and the European Union, which may not always align with Latvia’s domestic economic goals.

In conclusion, the Latvian Lati was the official currency of Latvia until its replacement by the Euro in 2014. Managed by the Bank of Latvia, the currency was subdivided into santīms and issued in various banknote and coin denominations. Latvia’s economy is primarily based on services, industry, and agriculture. The adoption of the Euro has promoted economic integration with the Eurozone, but it also necessitates adherence to the fiscal and monetary policies set by the European Central Bank and the European Union.