The currency reform, initiated in 1992, was continued in the reporting year. The transition to a permanent national currency was gradual, and there were no restrictions on the exchange of the old money for the new.
On February 12, 1993, the Republic of Latvia Currency Reform Committee passed a Resolution "On Issuing the 5 Lats Note". This marked the gradual introduction of lats into circulation, with the conversion of 1 lats for 200 Latvian rubles. The first 5 lats notes were put into circulation on March 5, 1993. Simultaneously, the withdrawal of notes of the denomination 500 Latvian rubles was started.
On March 16, 1993, the Currency Reform Committee passed a Resolution "On Issuing the 50 Santims, 1 Lats and 2 Lats Coins". According to this Resolution, the Bank of Latvia initiated the emission of the 1 lats coin on March 25, the 2 lats coin on April 15, and the 50 santims coin on April 22. Notes of 200 Latvian rubles were gradually withdrawn starting March 25.
On May 27, 1993, the Currency Reform Committee passed a Resolution "On Transition to Lats", according to which all other notes of denominations 10, 20, 50 [1], 100 [1] and 500 lats, and coins of denominations 1, 2, 5, 10 and 20 santims will gradually be introduced in circulation starting June 28, 1993. Coins of all santims denominations and notes of 10 and 20 lats were introduced into circulation on June 28, 1993. The notes of Latvian rubles were still preserved in circulation, but prices, tariffs, and account balances were calculated in lats starting June 28, 1993, according to the rate 1 LVL = 200 LVR. The same resolution prohibited displaying prices for goods and services in foreign currencies.
On May 27, 1993, one more Resolution was passed - "On Settling All Payments of Taxes, Duties and Non-Taxes in Lats and Santims". According to this Resolution, starting July 1, 1993, all payments into the budget shall be performed only in lats and santims, and in foreign currency only with a special permit issued by the Council of Ministers.
On September 14, 1993, the Bank of Latvia issued a Regulation "On Complete Withdrawal of Latvian Rubles". According to this Regulation, Latvian ruble ceased to be legal tender starting October 18, but the exchange of Latvian rubles for lats will not be restricted after the date mentioned until Latvian rubles will be completely withdrawn.
[1] Introduced on May 2,1994.