Euro adoption: lessons from Latvia

Nine months after Latvia introduced the euro, the country has seen a number of benefits: the common currency has significantly lowers the international transfer fees and conversion fees, Latvia uses a global reserves currency which helps remove devaluation risks, the country’s rating has improved and it is now able to take part in the European Monetary Union’s decision process. The Bank of Latvia is also expecting other benefits in the foreign investment area.

Latvia is also looking forward to Lithuania’s joining the Eurozone in January 2014. “It is very important for the Baltic countries — although they are competitors — to have this more homogenous investment climate,“ says Zoja Razmusa, Deputy Governor of the Bank of Latvia.