50 Litų (National Museum of Lithuania) – Lithuania

In 2005, Lithuania was in a pivotal period of monetary transition, operating under a currency board arrangement that had been a cornerstone of its economic stability since 1994. The national currency, the litas (LTL), was irrevocably fixed to the euro at a rate of 3.4528, a peg that had previously been to the U.S. dollar until 2002. This strict regime successfully tamed the hyperinflation of the early 1990s and provided a stable foundation for growth, but it also meant Lithuania had relinquished control over its independent monetary policy, with interest rates effectively set by the European Central Bank.

The dominant economic narrative of that year was Lithuania's determined push to join the European Exchange Rate Mechanism II (ERM II), the mandatory "waiting room" for adopting the euro. Having joined the European Union in 2004, the government viewed euro adoption as a strategic priority for deeper integration and to eliminate exchange rate risk for trade and investment. However, the path was blocked by persistently high inflation, which exceeded the Maastricht criterion. This inflation was largely driven by rapid convergence growth, rising wages, and soaring energy prices, making it difficult to meet the strict stability benchmarks required for ERM II entry.

Consequently, 2005 was a year of preparation and slight frustration. The currency board functioned smoothly, ensuring no volatility in the exchange rate, but the focus was on fiscal discipline and structural reforms to cool the overheating economy. The government officially submitted its application for ERM II membership in March 2005, but the European Central Bank and European Commission indicated that inflation must be lowered first. This delay set the timeline back, meaning that Lithuania's ambitious goal of adopting the euro by 2007 would be postponed, with the eventual entry into ERM II not occurring until 2004.