5 Euro (Džemma Skulma) – Latvia

In 2025, Latvia remains a fully integrated member of the Eurozone, with the euro as its sole legal tender since its adoption in 2014. The currency situation is characterized by stability and deep institutional anchoring within the European Central Bank's monetary policy framework. This integration provides Latvia with benefits such as eliminated exchange rate risk with its major trading partners, lower transaction costs, and a strong anchor against inflation, which continues to be a primary focus for the ECB following the post-pandemic and energy crisis spikes of the early 2020s.

Domestically, there is little to no political or public momentum for a return to the former national currency, the lats. The euro is widely accepted as a pragmatic reality that underpins Latvia's economic security and its identity within the core of the European Union. However, economic discussions in 2025 often center on the challenges of a one-size-fits-all monetary policy, particularly regarding interest rates set by the ECB. These rates may not always be optimally aligned with Latvia's specific economic cycle, sometimes creating headwinds for growth or credit accessibility compared to a hypothetical independent monetary policy.

Looking forward, Latvia's currency future is inextricably linked to the evolution of the Eurozone itself. National discourse focuses on leveraging the stability of the euro to attract investment and enhance competitiveness, while also advocating for greater EU-level fiscal integration and cohesion policies to mitigate regional disparities. The digital euro project, potentially entering its pilot phases, represents the next frontier, with Latvian financial institutions actively preparing for a future that includes a secure, central bank-backed digital currency alongside cash.