The currency of Latvia, known as lat (LVL), was the official currency of the country before the introduction of the euro. The term "lat" derives from the Latin name of the country, "Latvija", and has been used since the country's independence in 1918. The lat was divided into smaller units called "santimi".
Latvia joined the European Union in May 2004, a significant step that laid the groundwork for the adoption of the euro in 2014, with an exchange rate between the lat and the euro of 0.702804.
The Bank of Latvia is the institution responsible for managing the monetary policy and overseeing the financial and monetary system of the country.