What Currency Is Used in Latvia?

What currency is used in Latvia?

If you're planning a city break in Riga, exploring business opportunities in the Baltics, or shopping online from Latvian retailers, it’s essential to understand the currency used in Latvia. This guide is for travellers, expats, importers, and financial planners who need clear, practical information on Latvia’s currency system, how it works, and how to manage it effectively while avoiding common money mistakes.

Latvia’s official currency: the Euro (EUR)

Latvia uses the euro (€) as its official currency. It became the country’s legal tender on 1 January 2014, replacing the Latvian lats (LVL) as part of Latvia’s accession to the Eurozone. The transition was part of Latvia’s broader economic integration with the European Union.

The euro is abbreviated as EUR and subdivided into 100 cents. It is the same currency used across 20 EU countries, making it easy for tourists and businesses to operate across borders without needing to exchange money.

Euro denominations in circulation include:

• Coins: 1, 2, 5, 10, 20, and 50 cents; €1 and €2

• Banknotes: €5, €10, €20, €50, €100, €200 and €500 (though higher-value notes are rarely used in everyday transactions)

Latvian euro coins feature national designs on one side, such as the traditional Latvian maiden on the €1 coin, but are legal tender across all euro-using countries.

Who uses the euro in Latvia?

The euro is used across all of Latvia, including cities like Riga, Daugavpils, Liepāja, and rural areas. Whether you’re buying groceries, paying rent, dining out, or purchasing business services, euros are required for all payments.

Latvia is part of the Eurozone, and therefore follows the same monetary policy as other member states, set by the European Central Bank (ECB). The Bank of Latvia plays a supporting role in national implementation and regulation.

Benefits and considerations of using the euro in Latvia

Advantages:

• Ease of travel: Euro use simplifies cross-border movement within the EU, eliminating currency exchange between countries.

• Stable and trusted: The euro is a major global currency, backed by the ECB and a strong regulatory framework.

• No exchange risk for EU-based businesses or tourists.

Considerations:

• Currency conversion fees for visitors from non-euro countries like the UK or USA.

• Price comparisons may be harder for those unfamiliar with the euro’s value relative to their home currency.

• Cash still common in rural Latvia, where small shops may not accept cards.

Common misconceptions

A common misunderstanding is that Latvia still uses the Latvian lats or has its own unique currency. The lats was discontinued in 2014, and it is no longer accepted for payments. The euro is now the only legal tender.

Another myth is that euros from other countries aren’t accepted in Latvia. In fact, all euro coins and notes are valid across the entire Eurozone, regardless of their design or origin.

Tips for managing your money in Latvia

• Withdraw euros from local ATMs linked to major European banks for competitive exchange rates.

• Avoid exchanging large sums at airports, which typically offer poor conversion rates.

• Use a travel card or fee-free debit card to reduce costs on foreign transactions.

• Always pay in euros rather than using dynamic currency conversion if offered on card machines.

• Carry cash in small denominations if you’re heading to markets, rural areas, or small businesses.

FAQs

Can I use other currencies in Latvia?
No. Latvia only accepts euros. You’ll need to convert your home currency into euros for payments.

Are credit and debit cards widely accepted?
Yes. Cards are widely accepted in cities, shops, hotels, and restaurants. However, cash is still common in some smaller or rural establishments.

Should I bring euros with me or exchange in Latvia?
It’s often cheaper to withdraw euros from ATMs in Latvia using a travel-friendly card than to exchange cash before your trip.

Is tipping customary in Latvia?
Yes, though modest. Tipping 5–10% in restaurants is appreciated. Rounding up taxi fares or leaving a small tip for hotel staff is common practice.

Real-life example

A visitor from the UK arrives in Riga with £300. Rather than exchanging it all at the airport, they use a fee-free debit card to withdraw €100 at a local ATM. They use this cash at local cafés, markets, and taxis, and their card for hotel payments and shops. They avoid currency conversion fees by choosing to pay in euros and manage their money easily throughout their trip.