Bank of Latvia Bank of Latvia The Bank of Latvia () is the central bank of Latvia. It is one of the key public institutions and carries out economic functions as prescribed by law. It was established in 1922. The principal objective of the Bank of Latvia is to regulate currency in circulation by implementing monetary policy to maintain price stability in Latvia. Until 31 December 2013, the bank was responsible for issuing the former Latvian currency, the Lats. The Bank of Latvia administration is located in Riga. The fiscal year for the bank begins on 1 January and ends on 31 December.
On the Restoration of Independence of the Republic of Latvia that in April 1920 the Latvian nation followed the principle of self-determination by electing a Constitutional Assembly of Latvia, which adopted the Constitution of Latvia on 15 February 1922, in general, equal and direct elections, based on proportional representation. On 23 August 1939, the Soviet Union and Nazi Germany signed the Molotov–Ribbentrop Pact, which included a secret protocol dividing Eastern Europe into spheres of influence. Latvia was apportioned to the Soviet sphere and on 5 October 1939, signed a mutual assistance pact. On 16 June 1940, the Soviet Union issued an ultimatum to Latvia accusing it of not carrying out