10 Latu – Latvia

In 1993, Latvia was navigating the complex aftermath of the Soviet Union's collapse, grappling with a critical currency situation. The country was still using the interim Latvian ruble (LVR), introduced in 1992 to replace the Soviet ruble, but it was not a stable national currency. Hyperinflation, inherited from the crumbling Soviet monetary system, was rampant, eroding savings and destabilizing the economy. This period was marked by a dual-currency reality, with both the Latvian ruble and foreign currencies like the US dollar and German mark circulating, while the government worked urgently to establish monetary sovereignty and curb the economic crisis.

The cornerstone solution was the introduction of the Latvian lats (LVL) in 1993, a process executed with remarkable discipline. On March 5th, a temporary currency, the "reform lat," was released to circulate alongside the Latvian ruble at a 1:1 ratio, preparing the public for the change. Then, on June 28th, the permanent lats was introduced, replacing the Latvian ruble at a firm rate of 1 lats to 200 rubles. This reform was not merely a symbolic change; it was a strict, currency board-based monetary policy that tied the lats first to the IMF's Special Drawing Rights (SDR) and later to a basket of major currencies, ensuring full convertibility and absolute restraint on money printing.

The successful 1993 currency reform was a foundational milestone for Latvia's independence and economic future. By decisively ending the hyperinflation of the ruble period, the lats restored public confidence in the national financial system and provided the stability necessary for market reforms. This rigorous approach laid the groundwork for Latvia's subsequent economic growth, eventual accession to the European Union in 2004, and the final adoption of the euro in 2014, with the lats remembered as a powerful symbol of recovered sovereignty and fiscal responsibility.