From 1 May 2004 with Latvia's accession to the EU, the Bank of Latvia has become a member of the European System of Central Banks and is preparing for implementation of the euro, which in accordance with the current plans could happen in 2008.
There are no major changes in the operation of the Latvian Central Bank after 1 May 2004, as the Bank of Latvia continues to discharge its current functions, including implementation of the monetary policy, ensuring operation of the payment system, cash circulation, preparation of financial statistics and national balance of payments, and is gradually expanding macroeconomic analysis and research to incorporate the EU level economic development trends.
From 1 May 2004, the Bank of Latvia has become a holder of capital shares of the European Central Bank (ECB), and its total share in the ECB's capital is 0.2978% or 16 571 585 euros. This percentage or the share of the Bank of Latvia in the ECB capital has been estimated based on the size of the national economy and the total population. On 3 May 2004, the Bank of Latvia has paid up 7% or 1 160 011 euro of its total subscription to the ECB capital. The Bank of Latvia will have to pay up the remaining part of its subscription to the ECB capital only after Latvia joins the Economic and Monetary Union and implements the euro. In order to make the relevant contributions, the Bank of Latvia will use its foreign assets.