The Lithuanian Litas is the officially currency of Lithuania. The name was chosen after the name of the country. From 1994 to 2002, the Litas was pegged to the US Dollar at a fixed rate of 4:1. More recently, the Litas was pegged to the Euro at a rate of 3.4528:1. The euro was Expected to replace the litas on January 1, 2010, but because of the Litas’s inflation rate and Lithuania’s economic crisis, the replacement has been moved to January 1, 2014.
Economy
When Russia suffered an economic crisis in 1998, Lithuania was the Baltic state that accounted for almost all trade with Russia.
When facing an economic crisis, Lithuania responded to the challenge. Unemployment went down, while investment and domestic utilization and trade increased.
Lithuania is a member of the World Trade Organization and joined the EU in May 2004. It is continuing its privatization of state-owned utilities; more than 80% of all enterprises have been privatized.
Neighboring countries have helped to transform Lithuania into a market economy.
History
The first Litas was introduced on October 2, 1922, replacing the Ostmark and Ostruble.
In March 1923, the flow of Litas amounted to 39,412,984 Litai, backed by 15,738,964 in actual gold and 24,000,000 in elevated exchange securities.
By 1938, 1 US Dollar was equal to about 5.9 litai; 1 Litas = about 20 U.S. cents.
In April 1941, when Lithuania was taken over by the Soviet Union, the Litas was replaced by the Soviet Ruble.
