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01 January 2014

ECB: Latvia joins the euro area


The euro has been successfully introduced in Latvia. The number of EU Member States using the single European currency has therefore increased to 18, raising the number of Europeans sharing the currency to some 333 million people. (Includes Commission comments and link to ESM/Regling interview.)

“On behalf of the Governing Council of the European Central Bank (ECB), I welcome this further enlargement of the euro area. Latvia has earned its position as an integrated part of the Economic and Monetary Union”, said Mario Draghi, President of the ECB.

Following the adoption of the euro by Latvia, Latvijas Banka, the national central bank of Latvia, becomes a member of the Eurosystem, the central banking system of the euro area, which comprises the ECB and, as of today, the 18 national central banks of the EU Member States that have adopted the euro. In accordance with the Statute of the European System of Central Banks and of the European Central Bank, Latvijas Banka has paid up the remainder of its contribution to the capital of the ECB and transferred its contribution to the foreign reserve assets of the ECB.

The integration of Latvian monetary financial institutions (MFIs) into the euro area banking system on 1 January 2014 was already taken into account in the publication of the euro area liquidity needs and the benchmark allotment on 27 December 2013. Latvian counterparties of the Eurosystem will be able to participate in ECB open market operations announced after 1 January 2014.

A list of the MFIs located in Latvia that are subject to reserve requirements will be published shortly on the ECB’s website, as are the lists of the MFIs located in other EU Member States that have adopted the euro. Provision has also been made for a transitional maintenance period from 1 to 14 January 2014 for the imposition of minimum reserve requirements on Latvian MFIs. The assets located in Latvia that are eligible for use as collateral in the credit operations of the Eurosystem will also be added to the euro area’s list of eligible marketable assets, which is available on the ECB’s website.

Press release


European Commission President José Manuel Barroso said: "I am delighted to welcome Latvia as the eighteenth member of the euro area. This is a major event, not only for Latvia, but for the euro area itself, which remains stable, attractive and open to new members. For Latvia, it is the result of impressive efforts and the unwavering determination of the authorities and the Latvian people. Thanks to these efforts, undertaken in the aftermath of a deep economic crisis, Latvia will enter the euro area stronger than ever, sending an encouraging message to other countries undergoing a difficult economic adjustment. On behalf of the European Commission and myself, I offer my sincere congratulations to Latvia and best wishes for the future."

Olli Rehn, Vice-President of the European Commission responsible for Economic and Monetary Affairs and the Euro, said: "I want to very warmly welcome Latvia to the euro. Your efforts have paid off and your country's strong economic recovery offers a clear message of encouragement to other European countries undergoing a difficult economic adjustment. Joining the euro marks the completion of Latvia's journey back to the political and economic heart of our continent, and that is something for all of us to celebrate."

Press release

See also:


Press conference in Riga, 10.1.14:



© ECB - European Central Bank


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