MONEY IN LATVIA

From April 17, 2007 the Kunsthistorische Museum’s Coin Collection presents an exhibition entitled “Money in Latvia - Past and Present”.

This small country in northern Europe looks back on a long and eventful history that culminated in its declaration of independence on May 4, 1990. In the thirteenth century Latvia evolved out of the so-called Livonian Confederation, with Riga, the country’s modern capital, joining the Hanseatic League in 1282. The following centuries repeatedly witnessed loss of territory, partitioning, and new rulers, among them Poland, Sweden in 1621, Russia and, at the end of the First World War, Germany. In 1918 Latvia as an independent country was founded; in 1940, however, it was annexed by Russia, only to be replaced by the German Army in 1941. Between 1944 and 1990 Latvia again formed part of the Soviet Empire.

All these vicissitudes and the development of this Baltic state are also reflected in its finance. The earliest forms of payment (before the time of Christ) were amber – the shores of the Baltic Sea formed the starting point of the ancient Amber Road that led south via Carnutum (i.e. ancient Vienna) into the heart of the Roman Empire – as well as silver objects and silver bars.

The first centuries A.D. introduced Roman coins, but the Middle Age were dominated by the large silver treasures of the Vikings that consist mainly of Arab dirham coins and dinars from western Europe. In the early thirteenth century Riga gained her own mint, a living symbol of this important merchant city on the Baltic Sea. However, local coins were soon, and repeatedly, replaced by those from other realms or occupying forces.

The final restoration of the country’s independence led to the founding of the Latvian National Bank and the introduction of the Latvian Ruble which was replaced as the country’s official currency by the Lat, introduced on March 5, 1993. One Lat equals 100 Santims. As of January 1, 2005 the Lat has been tied to the Euro, with a fixed exchange rate of 1 Euro = 0,702804 LVL. The introduction of the Euro is planned for 2008/2009.

The exhibition, organized by the Latvian National History Museum in collaboration with the Latvian National Bank, will be on show at the Coin Collection until September 30, 2007.