Lithuania is a currency. Lithuanian litas. Lithuanian litas to euro (rate)

Lithuania - among the states with an interesting history. Equally fascinating is the process of formation of the national currency of this state - litas.

Lithuania: finance and history

Lithuania, as you know, has a very complicated history of its formation and development. In the Middle Ages, the territories of modern Lithuania were part of a powerful state - the Grand Duchy of Lithuania, which then merged into a union with another great power - the Commonwealth. But as a result of the partition of this state in the late 18th century, the territory of modern Lithuania has moved to Russia. The ruble became the official monetary unit on these lands.

During the First World War, the territory of Lithuania was occupied by the Germans. The local money system is also changing - the occupation authorities introduced a new currency in the form of an eastern German ruble. Due to the strongest internal political crisis and war, the Russian Empire disintegrated in 1917-18. Lithuania regains its independence.

In the first years of independent development, this Baltic state continues to use the German eastern ruble. Historians recorded precedents of commodity-money settlements in other currencies. Uncertainty in the sphere of monetary circulation forced the country's authorities to go for reforms. Also, the introduction of changes in the banking system contributed to the post-war crisis. The first step in the transformation was the introduction of the German mark (in Lithuanian "auxinas"). It was used quite successfully in monetary calculations. But soon in the economy of the young state came the period of hyperinflation (by the way, in the most postwar Germany business in the economy was not very good, which influenced the course of the brand). Carry out calculations on condition that the ever-increasing currency becomes more difficult.

How appeared and disappeared lit

The Lithuanian Parliament adopted a radical decision. The authorities decided - since there is an independent Lithuania, the currency should also be its own. In 1922 the Central Bank of the State appeared, and almost immediately in the country was introduced its own monetary unit - lit. The situation in the economy has normalized.

The German brand was successfully replaced by a lithium. It is interesting that banknotes, in accordance with the issuing policy of the Central Bank of Lithuania, were printed not in the country itself, but in England or Germany. In Lithuania, however, only coins were issued. In 1939 the Baltic state again lost its independence, having entered the USSR. The currency of Lithuania also changed: the ruble and kopecks had to get used to the Baltic countries again.

Lit again in circulation

After the well-known events of the late 80's and early 90's, Lithuania again becomes a sovereign state and renounces the ruble, as many economists and political scientists considered, at the first opportunity, as if emphasizing the readiness to pursue an independent economic policy. However, as soon as an independent Lithuania reappeared on the political arena, the currency of this country was not introduced immediately.

Practical return to the litka was preceded by "general coupons", sometimes called "vagnorkas" (they were introduced with the direct participation of the Prime Minister Gediminas Vagnorius). Only in 1993 the Litas returned to the circulation of the Baltic state. They began to gradually replace themselves "vagorno" at a rate of 100 to 1. Some time "common coupons" and litas were equivalent to payment means in the territory of Lithuania.

Banknotes and coins of Lithuania

Lithuanian is Lithuanian, which has no counterparts in other states, but it consists, like the dollar, of 100 cents. Now in cash circulation there are bills with the most different denominations - from 1 to 200 litas. In Lithuanian shops one can find banknotes of one of two series - those that were issued before 1997, and those that followed. But they are very similar. In 2007, there were updated bills, more protected from fakes.

The Lithuanian banknotes depict important events for Lithuania from history, famous politicians and cultural figures, monuments, architectural structures. The State Mint , in addition to the standard lithuanian, also produces jubilee, memorable samples of national currency. Such coins are minted from copper-aluminum alloys, nickel-silver, brass combinations of metals, contain precious metals (gold, silver).

Subjects of commemorative coins can be different. For example, coins were issued dedicated to a landmark event - when John Paul II paid a visit to Lithuania . A series of coins was also minted in honor of the 60th anniversary of the record of the famous Lithuanian pilots of Girenas and Darius, who crossed the Atlantic by air.

Exchange rate of litas

In the period from June 25, 1993 to the end of January 2002, the exchange rate of the Lithuanian national currency was tightly tied to the national currency of the United States. Lithuanian litas to the dollar began to sell at a rate of 4 to 1. Since February 2002, however, the Baltic currency has been tied to a single European one. The rate at which the Lithuanian litas was sold to the euro was 3.4528 to 1. This proportion has not changed since then.

Preparation for Lithuania's accession to the euro area

In the late 2000s, Lithuania's financial authorities began to make active attempts to replace the national currency with a single European currency. To get into the zone of action of one of the most powerful world currencies - the euro - is at the same time not easy. It is necessary to meet the so-called Maastricht criteria, under which the country's budget expenditures should not exceed revenues by more than 3% of annual GDP, and the public debt - not more than 60% of the country's GDP. Inflation in the economy should not be more than 1.5% relative to the average statistical figure of the three states that make up the Eurozone, characterized by the smallest price increase.

The decisive steps towards the Eurozone were made by Lithuania in early 2014, when the financial authorities of the country developed a plan according to which the strategy for joining the Eurozone should be implemented within several levels.

It was assumed that in the spring of 2014 experts from EU countries that are members of the Eurozone will appreciate the progress of Lithuania's preparations for the introduction of a single European currency, will analyze the readiness of the economy to fulfill the Maastricht criteria. In the case of a positive assessment by European partners, the final word was for the Balts, it all depended on what Lithuania itself would say: the currency should still be its own, or it can be entered into the Eurozone.

Arguments against the Eurozone

Opinions of experts on the prospects for Lithuania's accession to the Eurozone were different. Some analysts felt that this step is rash, arguing that the economy of Europe is still experiencing crisis phenomena. In addition, supporters of this point of view believe, integration within the Eurozone can significantly reduce the economic sovereignty of Lithuania. An example of some states that are now part of the euro area, but can not pursue their own monetary policy, confirms, as analysts believe, this thesis.

Lithuania, as some experts believed, would make sense to pay attention to the Czech Republic: it is a country with a post-Soviet past, it is part of the EU, like Lithuania. The currency of this Slavic country has its own, and monetary policy is independent - it is run by the national Central Bank.

A number of experts questioned the ability of the Lithuanian economy to withstand the Maastricht criteria for inflation. There were the theses that the financial authorities might be tempted to artificially underestimate the figures, although the Lithuanians themselves assured the community that they would not resort to such methods.

Arguments for the Eurozone

At the same time, there were also optimistic assessments of the prospects for Lithuania's accession to the Eurozone. Some economists have expressed the opinion that the state will receive, just the same, more economic sovereignty than now, when the rate of litas is tied to the euro. In their opinion, after entering the Eurozone, the country will have an opportunity to actively participate in determining the priorities of the financial policy of the European Central Bank.

What did the European partners decide?

In July 2014, the EU Council of Ministers decided to allow Lithuania to enter the Eurozone as of January 1, 2015. What is the exchange rate at the moment of transition of the Baltic country to the euro ? Lithuanian litas now corresponds to the euro in the proportion of 3.4528 units to 1. And this course was decided to fix. Lithuania, thus, will become the third former Soviet republic of the Baltic region, following Estonia and Latvia, which entered the euro area.