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From the 1 January, 2015 Lithuania will replace its national currency the litas with a common European currency the euro. Since introduction of the euro in 1999 already eighteen (out of twenty eight) Member States of the European Union joined to the euro area. To introduce the euro a Member State has to prove having healthy economy and to fulfil strict requirements regarding fiscal policy, including national debt, budget deficit, inflation and interest rates. Lithuania’s successful economic and fiscal policies created necessary preconditions for adoption of the euro.

Introduction of the euro provides with a number of economic advantages such as lower interest rates, reduced debt servicing costs, elimination of exchange rate costs, etc. The euro makes Lithuania more attractive for foreign investors as it brings assurance of lower risk.

As Lithuanian national currency the litas has been pegged to the euro at fixed exchange rate since 2002, the current rate will be maintained when switching to the euro. It will be possible to make cash payments in litas until 15 January, 2015. Commercial banks of Lithuania will exchange the litas to the euro free of charge without limits until 30 June 2015; after this period the litas could be exchanged only in the Bank of Lithuania.

The prices in Lithuania after adoption of the euro still to be displayed in both currencies for the first half of 2015.

Joining the euro area will facilitate further development of economic integration between Lithuania and the rest of European Union. Political and economic stability which provides European Union and common currency would also facilitate further development of beneficial business relations between Israel and Lithuania.

More information on euro in Lithuania - http://www.euras.lt/en/ .