coin, introduced on Christmas of 1929, became a popular symbol of independence during the Soviet era. The coin was designed by
Rihards Zariņš. The first lats (symbol: ℒ︁𝓈) was first introduced on 3 August 1922, replacing the first
Latvian ruble at a rate of ℒ︁𝓈 1 = Rbls 50. The lats was pegged against the
gold standard from its introduction until 28 September 1936, when it was pegged against the
British pound sterling at a rate of 1 £ = 25,22 ℒ︁𝓈. However, as the pound still retained the standard, a link of sorts existed until 1940. As Formally, the peg against the pound was in effect until 26 September 1939, when it was abolished to the decline of the pound due to the
Second World War and the lats became a floating currency, regulated only if the exchange rate against the US dollar or the Swedish kroner fluctuated for more than 5%. On 17 June 1940,
Latvia was occupied by the
USSR. After the dismantling of the
Bank of Latvia and its replacement with the Latvia Republican Office of the
Gosbank on 10 October, the
Soviet ruble was introduced alongside the lats on 25 November 1940 at par, although the real monetary value of the ruble was about a third of the lats. Thus both wages and prices were gradually raised to devalue the lats from June to November 1940. To lessen the effect of the exodus of goods sent by Soviet occupational personnel to the USSR, taking advantage of the new exchange rate, buyer limits for various goods were introduced. Although the Soviet authorities initially pledged not to abolish the lats, it was taken out of circulation without prior warning at 13:05 on 25 March 1941, simultaneously nationalising all deposits larger than ℒ︁𝓈 1000. A part of the Latvian gold, silver and currency reserves were sent to Moscow at the start of the occupation.
Coins Coins were issued in
denominations of 1, 2, 5, 10, 20 and 50 santīmu, ℒ︁𝓈 1, ℒ︁𝓈 2 and
ℒ︁𝓈 5. The 1s, 2s and 5s were in
bronze (
Cu,
Sn,
Zn), the 10s, 20s and 50s were
nickel, while coins of ℒ︁𝓈 1 and above were struck in
silver, with a
purity of 83,5 percent. The 1s, 2s and 5s coins featured the nominal and issue year on the obverse, while the reverse featured the lesser
coat of arms of Latvia with "LATVIJA" written on a ribbon below the shield. A new, simplified design of the 1s and 2s coins went into circulation from 1937, where the issue year was moved to the obverse and
grain ears flanked the nominal, while the reverse moved the text above the coat of arms and replaced the ribbon with an oak leaf
wreath. The 10s and 20s coins had a similar design – the obverse featured the nominal and a horizontal grain ear under it, while the reverse contained the lesser coat of arms, a ribbon with the name of the country in Latvian and the issue year. The 50s coin reverse was the same, but the obverse featured a Latvian maiden in traditional dress operating a
rudder of a
sailboat, with the nominal on the top right corner. The ℒ︁𝓈 1 and ℒ︁𝓈 2 coin obverse featured the nominal and the issue year with a ribbon-bound plant wreath under it, while the reverse – the greater coat of arms of Latvia with it official name "LATVIJAS REPUBLIKA" above and below it.
Banknotes The Latvian Bank issued notes from 1922 in denominations of ℒ︁𝓈 20, ℒ︁𝓈 25, ℒ︁𝓈 50, ℒ︁𝓈 100 and ℒ︁𝓈 500. They also issued ℒ︁𝓈 10 notes which were 500 ruble notes overprinted with the new denomination. The government issued currency notes from 1925 in denominations of ℒ︁𝓈 5, ℒ︁𝓈 10, ℒ︁𝓈 20 and ℒ︁𝓈 100. The ℒ︁𝓈 500 note was issued in 1929. Most banknotes, particularly high-nominal ones, were printed in the United Kingdom from 1924 to 1938/1939, when production was switched to the State Mint in Riga. == Second lats, 1993–2013 ==