Latvian Lats

Overview

The Latvian Lat is the currency of Latvia. The symbol for the Lat is Ls. The Lat is subdivided into 100 cents.

Economy

• Latvia has largely recovered from a transitional economic crisis resulting from the Russian financial crisis of 1998. This was the result of strict government budgeting and reorientation to exports with European Union countries.
• Real estate, banks, and almost all major companies are being privatized, though the state still has large holdings in major projects.
• In February 1999 Latvia joined the World Trade Organization. Among its main goals is to gain membership in the EU.
• Latvia’s major economic concerns are discrepancies in government accounts. Major efforts are underway to increase accountability, which may lessen the current budget deficit.
• Latvia’s main export are transportation vehicles, such as buses, railroad and street cars, and vans. Synthetic fibers, fertilizers, agricultural machines, processed foods, pharmaceuticals, electronic devices, radios, washing machines, and textiles are also exported.

History

• The Lat was launched in 1922, replacing the Latvian Ruble.
• In 1940, when Latvia became part of the USSR, the USSR Ruble replaced the Lat.
• In 1993, when Latvia became independent from the USSR, the Latvian Lat again became the official currency.
• It has been speculated that Latvia will adopt the Euro, but this has not happened yet.