Bank of Latvia : Euro amount in circulation has exceeded that of lats

Friday, 10 January, the amount of cash euro in circulation has exceeded that of lats. According to Bank of Latvia calculations, Friday during the day there was about 570 million euro cash and lats cash worth 526 million euro in circulation in Latvia. To compare, in Estonia the amount of euro in circulation also exceeded that of krona on the tenth day after euro introduction.

In Latvia, euro changeover in everyday settlements has been successful and smooth. That was ensured by timely and comprehensive preparation by many of the involved branches for the introduction of the common currency. All the tasks related to euro introduction were accomplished to the planned extent and complied with the set deadlines.

Up to and including 14 January, the parallel circulation of the euro and lats cash currency will continue. Lats will be exchanged for euro in the regional branches of the Latvian Post Office until 31 March and in commercial banks until 30 June. At the Bank of Latvia, this exchange is set to take place in perpetuity.

During the preliminary supply period (November and December 2013) credit institutions, in accordance with the amounts and denominations requested, received a total of 283.2 million euro (17.4 million euro banknotes and 125.4 million euro coins) at the Bank of Latvia - cash that was required for circulation during the first days of euro introduction. About 700 000 starter kits of Latvian euro coins were also made available.

Data on cash indicate that altogether 630.8 million lats was to be exchanged (the amount of cash lats in circulation on 31 December 2013; the total amount was larger: it included the euro obtained through exchange during the pre-supply period in December). For that to happen, almost 400 million Latvian euro coins of various denominations had been struck at the Baden-Würtemberg State Mint (at the value of 98.8 million euro) and 110 million euro banknotes of various denominations had been supplied (at the value of 3.12 billion euro).

As Latvia integrates with the euro area, the Bank of Latvia as a participant in the Eurosystem will continue to provide for smooth circulation of cash currency in the country.