Beginning in the New Year, Latvia will join the Eurozone and use the Euro, a form of currency that is valued throughout Europe.
Latvia, a country that was part of the former Soviet Union, met all the standards to become members of the Eurozone. Latvia is the fourth former communist country in the currency area after Slovakia, Slovenia and Estonia.
“Your efforts have paid off, and your country’s strong economic recovery offers a clear message of encouragement to other European countries undergoing a difficult economic adjustment,” said EU Economic and Monetary Affairs Commissioner Olli Rehn, according to Bloomberg News.
It is the fourth form of currency in Latvia in 22 years. The ruble and pre-world war II lats were previously forms of currency. The currency switch has been met with hesitation by many citizens. Among the concerns are rising prices and inflation.
According to the New York Times, David Moore, the I.M.F.’s country representative, the euro is already part of their system. Moore said, “People earn wages and pay day-to-day bills in lats but save, borrow, and pay for mortgages in euros.”
Photo courtesy of Wikimedia Commons.