The Lithuanian litas (ISO 4217 code: LTL, symbolized as Lt; plural litai (nominative) or litų (genitive) was the currency of Lithuania, until 1 January 2015, when it was replaced by the euro. It was divided into 100 centų (genitive case; singular centas, nominative plural centai). The litas was first introduced on 2 October 1922 after World War I, when Lithuania declared independence, and was reintroduced on 25 June 1993 following a period of currency exchange from the Soviet ruble to the litas with the temporary talonas then in place. The name was modeled after the name of the country (similar to the lats of Latvia). From 1994 to 2002, the litas was pegged to the U.S. dollar at the rate of 4 to 1. The litas was pegged to the euro at the rate of 3.4528 to 1 since 2002. The euro was expected to replace the litas by 1 January 2007, but persistent high inflation and the economic crisis delayed the switch.
On 1 January 2015, the litas was switched to the euro at the rate of LTL 3.4528 to 1. Nevertheless, coins and banknotes of the second litas will be exchanged indefinitely into euros by the Bank of Lithuania.
First litas, 1922–1941
History
The first litas was introduced on 2 October 1922, replacing the ostmark and ostrubel, both of which had been issued by the occupying German forces during World War I. The ostmark was known as the auksinas in Lithuania.
The litas was established at a value of 10 litų = 1 US dollar and was subdivided into 100-centų. In the face of worldwide economic depression, the litas appeared to be quite a strong and stable currency, reflecting the negligible influence of the depression on the Lithuanian economy. One litas was covered by 0.150462 grams of gold stored by the Bank of Lithuania in foreign countries. In March 1923, the circulation amounted to 39,412,984 litas, backed by 15,738,964 in actual gold and by 24,000,000 in high exchange securities.Germany Deaf to Currency Reform, New York Times, 5 March 1923, page 22 It was required that at least one third of the total circulation would be covered by gold and the rest by other assets. By 1938, 1 U.S. dollar was worth about 5.9 litai, rising to about 20 U.S. cents before its disappearance in 1941.
Memelgebiet
In March 1939, Nazi Germany demanded that Lithuania give up the Klaipėda Region (also known as the Memel Territory), which had been detached from Germany after World War I. The Lithuanian government complied, and on 23 March 1939 the area was annexed by Germany.
On the same day the reichsmark replaced the litas as the official currency of the region, with 1 litas being exchanged for 40 pfennig. Until 20 May 1939 inhabitants of the Memelgebiet could exchange litas for reichsmarks.
Soviet occupation
The litas was replaced by the Soviet ruble in April 1941 after Lithuania was annexed by the Soviet Union, with 1 litas equal to 0.9 rubles, although the actual value of the litas was about 3 to 5 rubles. Such an exchange rate provided great profit for Soviet military and party officials. Trying to protect the value of the currency, people started to massively buy, which, together with a downfall in production (following nationalization), caused material shortages. Withdrawals were then limited to 250 litų before the litas was completely abolished. In 1941 circulation of litas was completely prohibited.
Coins
Coins were introduced in 1925 in denominations of 1 centas, 2 centai, 5 centai, 10, 20, 50-centų, and 1 litas, 2, 5-litai, with the litas coins in silver. 10 litų coins were introduced in 1936. All these coins were designed by the sculptor Juozas Zikaras (1881–1944). The litas coins displayed Jonas Basanavičius and Vytautas the Great, which was replaced by a portrait of President Antanas Smetona.
Banknotes
In 1922, the Bank of Lithuania issued notes in denominations of 1 centas, 2 centu, 5 centai, 10, 20, 50-centų, and 1 litas, 2 litu, 5 litai, 10, 50, 100 litų. In 1924, 500 and 1000 litų notes were added. Denominations below 5 litai were replaced by coins in 1925.
+10 September 1922 Issue Image Denomination Obverse Reverse 1 centas Coat of arms of Lithuania 5 centai 20-centų 50-centų 1 litas 5 litai
+16 November 1922 Issue Image Denomination Obverse Reverse 1 centas 2 centu 5 centai 10-centų 20-centų Coat of arms of Lithuania 50-centų 1 litas 2 litu 5 litai Portrait of a woman at the spinning wheel Sower 10 litų Coat of arms of Lithuania, Timber rafting Two women 50 litų Arms of Kaunas, Vilnius and Klaipėda, Grand Duke Gediminas Vilnius Cathedral and its belfry 100 litų Coat of arms of Lithuania, Vytautas the Great Two women
+1924–1928 Issue Image Denomination Obverse Reverse 10 litų Coat of arms of Lithuania Fieldwork 50 litų Dr. Jonas Basanavičius Vilnius Cathedral 100 litų Lithuanian woman in traditional dress Bank of Lithuania 500 litų Coat of arms of Lithuania 1000 litų
+1929–1930 "500 Years Vytautas the Great" Commemorative Issues Image Denomination Obverse Reverse 5 litai Coat of arms of Lithuania, Vytautas the Great Battle of Grunwald 20 litų Coat of arms of Lithuania, Vytautas the Great, Vytautas' the Great Church Statue of Liberty, Klaipėda
+1938 "20 Years of Independence" Commemorative Issue Image Denomination Obverse Reverse 10 litų Antanas Smetona 1st President of Lithuania The original 20 members of the Council of Lithuania after signing the Act of Independence of Lithuania or Act of 16 February 1918
Second litas, 1993–2015
The litas became Lithuania's currency once more on 25 June 1993, when it replaced the temporary talonas currency at a rate of 1 litas to 100 talonas.
Banknotes
In 1993, banknotes (dated 1991) were issued in denominations of 1 litas, 2, 5 litai, 10, 20, 50, 100 litų. Due to poor designs, these were found to be easily copied and a second series of notes was swiftly introduced in denominations of 1 litas, 2, 5 litai, 10, 20, 50 litų, with only the 100 litų notes of the first series remaining in circulation. 200 litų notes were introduced in 1997, followed by 500 litų in 2000.
Denomination Equivalent in euros Year of Introduction Image Banknote designer Banknote features Printing house Demonetised 1 Litas €0.29 1994 Giedrius Jonaitis Obverse: ŽemaitėReverse: Church of Saint Juozapas in Palūšė De La Rue Ltd., United Kingdom 2007 March 1 2 Litai €0.58 1993 Obverse: Motiejus ValančiusReverse: Trakai Island Castle 5 Litai €1.45 Obverse: Jonas JablonskisReverse: Sculpture "School of hardship" by P. Rimšas 10 Litų €2.90 1991 Obverse: Steponas Darius & Stasys GirėnasReverse: Lėktuvas Lituanica American Banknote Corporation, USA 1996 January 1 1993 2007 March 1 1997 De La Rue Ltd., United Kingdom 2012 June 1 2001 Orell Fussli Security Printing Ltd., Switzerland 2015 January 162007Giesecke & Devrient GmbH, Germany 20 Litų €5.79 1991 Justas Tolvaišis Obverse: MaironisReverse: Sculpture "Freedom" by J. Zikaras American Banknote Corporation, USA 1994 June 1 1993 2007 March 1 1997 Justas Tolvaišis & Giedrius Jonaitis De La Rue Ltd., United Kingdom 2012 June 1 2001 Giedrius Jonaitis Giesecke & Devrient GmbH, Germany 2015 January 16 50 Litų €14.48 1991 Rimvydas Bartkus Obverse: Jonas BasanavičiusReverse: Vilnius Cathedral American Banknote Corporation, USA 1996 January 1 1993 2007 March 1 1998 Giedrius Jonaitis & Rimvydas Bartkus Giesecke & Devrient GmbH, Germany 2015 January 16 2003 Giedrius Jonaitis 100 Litų €28.96 1991 Rytis Valantinas Obverse: Simonas DaukantasReverse: Vilnius University Orell Fussli Security Printing Ltd., Switzerland 2001 July 1 2000 Giedrius Jonaitis 2015 January 16 2007 Rytis Valantinas Francois – Charles Oberthur Fiduciaire, France 200 Litų €57.92 1997 Obverse: VydūnasReverse: Klaipėda Lighthouse Giesecke & Devrient GmbH, Germany 500 Litų €144.81 2000 Rimvydas Bartkus Obverse: Vincas KudirkaReverse: Lithuanian landscape
Coins
In 1993, coins were introduced (dated 1991) in denominations of 1 centas, 2, 5 centai, 10, 20, 50-centų, and 1 litas, 2, 5 litai. The 1 centas, 2, 5 centai pieces were minted in aluminium, the 10, 20, 50-centų in bronze and the litas coins were of cupro-nickel. In 1997, nickel-brass 10, 20, 50-centų coins were introduced, followed by cupro-nickel 1 litas, bimetallic 2 and 5 litai in 1998. All had the obverse designs showing the coat of arms in the center and the name of the state "Lietuva" in capital letters.
The first coins were minted in the United Kingdom and arrived in Lithuania on 31 October 1990. Later, all coins were minted in the state run "Lithuanian Mint", which started its operations in September 1992 and helped to cut the costs of introducing the litas.
History
Preparatory work
Officials started to prepare for the introduction of the litas even before independence was declared, it was thought to introduce the litas alongside the ruble even if Lithuania remained a part of the Soviet Union. In December 1989, artists were asked to submit sketches of possible coin and banknote designs. Also, a list of famous people was compiled in order to determine who should be featured for its currency.
The Bank of Lithuania was established on 1 March 1990. Ten days later, Lithuania declared its independence from the Soviet Union. At first, the Lithuanian government negotiated in vain with François Charles Oberthur, a printing company located in France to print the banknotes. In November 1990, the Bank of Lithuania decided to work with the United States Banknote Corporation (now American Banknote Corporation). In late autumn 1991, the first shipments of litas banknotes and coins arrived in Lithuania.
In November 1991, the Currency Issue Law was passed and the Litas Committee was created. It had the power to fix the date for the litas to come into circulation, the terms for the withdrawal from circulation of the ruble, the exchange rate of the litas and other conditions. Officials waited for a while for the economy to stabilise so as not to expose the young litas to inflation. About 80% of Lithuania's trade was with Russia and the government needed to find a way to smooth the transition away from the ruble zone. Also Lithuania needed to gather funds to form a stabilisation fund.
Gathering funds
At first, Lithuania did not have gold or any other securities to back up the litas. Lithuania needed to find about 200 million U.S. dollars to form the stabilisation fund. First, it sought to recover its pre-war gold reserves (about 10 tonnes) from France, the United Kingdom, Switzerland, etc. In the interwar period Lithuania stored its gold reserves in foreign banks. After the occupation in 1940 those reserves were deemed "nobody's": there was no independent Lithuanian state and most Western countries condemned the occupation as illegal and did not recognise the Soviet Union as a successor. The Bank of England, for example, sold the reserves to the Soviets in 1967. However, in January 1992, it announced that this action was a "betrayal of the people of the Baltic states" and that it would return the originally deposited amount of gold, now worth about 90 million pounds sterling, to the three Baltic states. Lithuania received 18.5 million pounds or 95,000 ounces of gold and remained a customer of the bank. Similarly, in March 1992 Lithuania reclaimed gold from the Bank of France and later from the Bank of Sweden.
In October 1992, the International Monetary Fund (Lithuania joined this organisation on 29 April 1992) granted the first loan of 23.05 million U.S. dollars to create the stabilisation fund. However, it is estimated that at the time of the introduction of the new currency, Lithuania gathered only $120 million for the stabilisation fund. For a brief while it was kept a secret so as not to further damage the reputation and trust in the litas.
Delayed introduction of the litas