Bank of Latvia exchange rates

Given that the primary objective of the Eurosystem’s monetary policy is to maintain price stability, it has no explicit foreign exchange objective. The euro floats freely in the global exchange markets. Whenever necessary, however, the Eurosystem can counteract the fluctuations in the euro exchange rate by buying or selling the euro for other currencies.

Any foreign exchange intervention by the Eurosystem is conducted in a decentralised manner between national central banks and foreign exchange counterparties.

The ECB holds foreign reserves for any possible foreign exchange operations required. All national central banks of the euro area have transferred a (comparatively small; 3.5 % in the case of Latvia) part of their own foreign reserve assets (gold including) to the ECB. To compensate for the transfer, the Bank of Latvia has a euro-denominated claim on the ECB, on which the ECB pays interest.

History

History of the Latvian bank exchange rate percent.