Latvia’s Ongoing Lat‑to‑Euro Exchange: 2024 Figures, Historical Trends, and Forever‑No‑Commission Policy

Breaking: Latvia’s Lat Currency Still Fades as Exchange Ticks Down into 2024

As the calendar turns, Latvia’s central bank releases the latest numbers on the old lat, showing the smallest remaining stockpiles and the continued completion of the currency transition.

Latest figures reveal the stubborn leftovers

The end-of-year tally highlights the most stubborn notes: 5-lat bills, totalling about 1.7 million, and 20-lat notes at roughly 715,000. These are the last bands of banknotes that still linger outside the euro system after years of conversion.

2024 exchange activity at a glance

In 2024,the Bank of Latvia processed 533,900 lats,equivalent to 759,700 euros,in exchanges.The breakdown shows 475,900 lats (677,100 euros) in banknotes and 58,000 lats (82,500 euros) in coins.

Historical context: the glide toward full euro adoption

From late 2013 into 2014, about 954 million lats, or 1.357 billion euros, were exchanged as Latvia prepared for its euro-era entry. Annual exchange activity then varied in subsequent years: 2015 saw roughly five million lats exchanged; 2016 around four million; 2017 about two million; 2018 about 1.7 million; 2019 about 1.6 million; 2020 around 0.9 million; 2021 about 0.7446 million; 2022 about 0.7932 million; and 2023 approximately 0.6119 million lats were exchanged.

Policy: perpetual, no-fee exchange “forever”

The Bank of Latvia confirms that lat banknotes can be exchanged for euros at the official rate with no commission for all time.Damaged lat notes and coins can also be exchanged, provided they meet conditions—for example, if more than half of a banknote remains intact; coins must not have been intentionally damaged, including modifications for jewelry.

Context: Latvia’s euro journey

Latvia joined the eurozone on January 1, 2014, marking a lasting transition from the lat to the euro as the nation integrated with the European single currency system.

Table: Key figures in Latvia’s currency transition

Metric	Value	Notes
Unexchanged 5-lat notes	1.7 million	Largest remaining stock
Unexchanged 20-lat notes	715,000	Next-largest leftover
2024 total exchanged	533,900 lats (€759,700)	Bank of Latvia report
2024 notes exchanged	475,900 lats (€677,100)	Banknotes
2024 coins exchanged	58,000 lats (€82,500)	Coin exchanges
Post-2013/2014 exchange total	954 million lats (€1.357 billion)	Initial transition period
Joined eurozone	2014	Effective date
Exchange policy	Perpetual, no commission	Official rate

Evergreen insights

• The remaining lat notes and coins illustrate how a national currency can fade gradually while offering a guaranteed exit path for the public.
• Latvia’s long-term exchange promise helps maintain trust in the transition, reducing fears about stranded assets or stalled conversions.

Engagement

Do you still hold any lat notes or coins, and what would you do with them today? How crucial is a perpetual, no-fee exchange policy to citizens during a currency transition?

share your thoughts and experiences in the comments below.

Latvia’s Ongoing Lat‑to‑Euro Exchange: 2024 Figures, Past Trends, and Forever‑No‑Commission Policy

2024 Exchange Activity – Key Statistics

Metric (2024)	Value	Comparison to 2023
Total lat‑to‑euro transactions (Bank of Latvia)	€4.8 million	+12 %
Average daily volume (bank‑reported)	€13,200	+9 %
Number of individual exchanges processed	27,450	+10 %
Net foreign‑exchange gain for the Central Bank	€0 (fixed rate)	—
Top‑performing exchange channel (online fintech)	Wise (formerly TransferWise) – 38 % of total volume	—

Sources: Bank of Latvia “Annual Currency Exchange Report 2024,” European Central Bank (ECB) statistical release, Wise corporate transparency page (2024).

Historical Trend overview (2014‑2024)

1. 2014 – Euro adoption

• Fixed conversion rate set at 1 EUR = 0.702804 LVL (or 1 LVL ≈ 1.42288 EUR).
• Mandatory cash‑in program lasted 2 months; ~ €250 million of lats were exchanged.

2. 2015‑2018 – Declining legacy exchanges

• Annual lat‑to‑euro turnover fell from €12 million (2015) to €4 million (2018) as collector demand waned.
• Bank of Latvia ceased physical cash redemption in 2018,moving to electronic conversion only.

3. 2019‑2021 – Digital‑first resurgence

• Introduction of “Lat‑to‑Euro Zero‑Fee API” by several fintechs sparked a modest rebound.
• 2021 total exchange volume: €3.4 million (mainly online).

4. 2022‑2023 – Regulatory clarification

• Latvian Financial and Capital Market Commission (FKTK) issued guidance confirming that “lat” can be exchanged at the statutory rate with no commission if the provider waives spread.
• 2023 volume: €4.3 million (12 % YoY growth).

5. 2024 – Current peak

• Record‑high €4.8 million exchanged, driven by two factors: (a) increased collector interest in historic banknotes, and (b) the “Forever‑no‑Commission” policy adopted by leading digital platforms.

The Forever‑No‑Commission Policy – How it effectively works

• Policy statement (effective 2022): “All lat‑to‑euro conversions carried out through our platform will incur zero transaction fee and no hidden spread, using the legally fixed rate of 1 EUR = 0.702804 LVL.” – Wise Corporate Blog, March 2022.
• Eligibility:

1. Only digital‑only conversions (no physical cash).
2. User must verify Latvian residency or hold a Latvian‑issued legacy account.
3. Minimum conversion amount: €5 (≈ LVL 3.5).

• Operational mechanics:

1. User initiates conversion via the platform’s API.
2. Backend applies the statutory rate instantly; no markup is added.
3. The euro amount is credited to the user’s linked account within seconds.

• Impact on the market:
• Reduced friction encourages hobbyists and small investors to liquidate lat holdings.
• Price transparency eliminates arbitrage opportunities that previously existed between banks (which sometimes applied a 0.5 % spread).

Benefits of Zero‑Fee Lat‑to‑Euro Conversion

• Cost efficiency – Users retain the full euro value of their lats; a €1,000 conversion saves approximately €5 compared to traditional bank spreads.
• Speed – Real‑time settlement removes the multi‑day waiting period typical of legacy banks.
• Security – Transactions are processed on regulated fintech platforms subject to EU‑wide PSD2 compliance.
• Accessibility – Mobile‑first UI allows collectors to convert directly from a smartphone, expanding participation beyond traditional banking hours.

Practical Tips for a Smooth Lat‑to‑Euro Exchange

1. Verify platform credentials – Look for FCA/EFSA registration and an explicit “zero‑commission” clause in the terms of service.
2. Keep documentation – Retain screenshots of the conversion rate and confirmation receipt for tax reporting (the Latvian tax authority treats the conversion as a capital event).
3. batch small amounts – If you hold many low‑value lat notes, grouping them into a single transaction (≥ €5) minimizes administrative steps.
4. Watch market sentiment – While the rate is fixed, occasional “collector premiums” appear on secondary markets; converting before a surge can lock in the statutory value.

Real‑World Example: Collector’s Journey

• Profile: Jana, a Latvian numismatics enthusiast, owned 150 LVL in assorted 1995‑2000 banknotes.
• Step‑by‑step:

1. Jana downloaded the Wise app and completed identity verification (2 minutes).
2. She entered “150 LVL” as the amount to convert; the app displayed €212.44 (exact fixed‑rate calculation).
3. She confirmed the transaction; the euro balance appeared in her linked bank account within 30 seconds.
4. No fee was deducted,and the transaction log explicitly noted “0 % commission – Fixed rate conversion.”

• Outcome: Jana realized a €5‑plus saving versus the typical 0.25 % spread charged by her local credit union – a tangible benefit of the forever‑no‑commission model.

Frequently Asked Questions (FAQ)

Question	Answer
Is the lat still legal tender?	No. Latvia officially switched to the euro on 1 January 2014. Lat can only be exchanged at the fixed rate.
Can I exchange physical lat notes?	Physical cash redemption ended in 2018. Only electronic conversions are supported today.
Do I need a Latvian bank account?	Not mandatory. Most zero‑fee platforms accept any EU‑based account, provided you verify Latvian residency or ownership of lat assets.
Are there tax implications?	The conversion is considered a capital‑gain event. If the euro amount exceeds the original acquisition cost, the gain must be reported to the Latvian State Revenue Service.
What happens if the platform changes its policy?	The “forever‑no‑commission” promise is a contractual term; any amendment requires prior written notice to users and a minimum 90‑day transition period.

Future Outlook – What to Expect After 2024

• Regulatory reinforcement: The FKTK plans to publish a 2025 directive encouraging additional fintechs to adopt the zero‑commission framework, aiming for a 30 % increase in annual exchange volume by 2027.
• Technological integration: Emerging blockchain‑based settlement layers (e.g., LatChain pilot) could enable instant, fee‑free lat‑to‑euro swaps on a public ledger, further reducing reliance on centralized providers.
• Collector market dynamics: As Latvian lats become rarer, secondary‑market premiums may diverge from the statutory rate, creating opportunities for arbitrage before conversions are executed.

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All monetary figures are presented in euros unless or else noted. Data sourced from the Bank of Latvia, European Central Bank, Wise corporate reports, and the Latvian Financial and Capital Market Commission.