naudas

Nauda is the Latvian word for money, the general medium of exchange, store of value, and unit of account used in Latvia. It covers physical cash such as coins and banknotes as well as non-cash forms like bank deposits and electronic payments. In everyday language, nauda refers to money in general, while inflected forms such as naudas appear in phrases like naudas vērtība (the value of money).

History and usage: Latvia has used various forms of money over time, from barter and metal objects to state-issued currencies. After regaining independence, Latvia issued its own currency, the lats, and later joined the euro area. Since 2014 euro is the official currency in Latvia, and euro banknotes and coins circulate nationwide. Digital money, including online banking, card payments, and electronic transfers, is widely used alongside cash.

Monetary governance: The central bank of Latvia, Latvijas Banka, operates within the Eurosystem and oversees payment systems and financial stability in coordination with the European Central Bank and other euro-area institutions. The country participates in European monetary policy while maintaining its own financial infrastructure for euro-related cash handling and digital payments.