Exchange rate (valūtas kurss)

The exchange rate used in Latvian accounting is the euro reference rate published by the European Central Bank. Amounts in a foreign currency are converted into euro at the rate in force at the start of the day of the transaction.

The unit of value in the books is the euro. Where a currency has no ECB reference rate, a market rate against the euro published by a recognised financial information provider is used. The accounting record shows the foreign-currency amount and the rate used alongside the euro amount.

A VAT invoice may show its amounts in any currency, but the VAT payable must be stated in euro at the accounting rate in force at the start of the day of the transaction or of receipt of the advance. The rate in force at the start of a day is the last one the ECB published before that day.

At the end of the financial year, foreign-currency cash balances, amounts owed by debtors and to creditors and other currency balances are revalued at the rate in force at the end of the last day of the year, and the difference is booked.