Will Latvia Continue to Use 1 and 2 Cent Coins?

Latvia's Currency Debate Continues

As discussions regarding the use of small denomination coins continue, Latvia remains firm in its decision to keep the 1 and 2 cent coins for the time being. This conversation arises particularly in light of neighboring Estonia, which has recently discontinued its use, becoming the first country in the Baltic region to take such a step. Lithuania is also considering similar changes.

Zita Zarina, a member of the board of Latvijas Banka, shared insights on the matter during an appearance on the TV3 program "900 Seconds." She affirmed that Latvia is not planning any immediate changes regarding its small coins, despite a noticeable trend of declining usage. Zarina noted that many people do not actively use these small coins during transactions, suggesting a growing irrelevance.

Estonia's Moves

In an effort to reduce the circulation of small change, Estonia has begun rounding prices to the nearest five cents this year, a measure that has shown success. In contrast, implementing such a system in Latvia proves to be more complicated. Zarina pointed out that adapting the cash registers for rounding prices would require significant time and financial resources—costs that retailers are understandably reluctant to absorb.

Future Possibilities for Latvia

Despite the current stance, Latvijas Banka has been assessing the situation for several years. Zarina expressed optimism that discussions could lead to reforms in the near future. Recent conversations with the State Revenue Service indicate a more flexible approach towards possible changes, hinting at a potential shift in policy as attitudes evolve.

As Latvia observes its neighbors, the ongoing dialogue surrounding the small coins remains a point of public interest, particularly as everyday transactions evolve in an increasingly cashless society. The future of the 1 and 2 cent coins in Latvia will depend on further assessments and the practicality of implementing changes that would align with the needs of both consumers and businesses.