About the Bank
What is the Bank of Lithuania and what does it do?
The Bank of Lithuania is the central bank of the country. It
has the exclusive right to issue the currency of the Republic of Lithuania into
circulation and to withdraw it.
The principal objective of the Bank of Lithuania is maintain
price stability, i.e. as low inflation as possible. In implementing this
objective the Bank of Lithuania conducts monetary policy, supervision
of credit institutions, management of foreign reserves and
performs other functions.
How does the Bank of Lithuania implement the primary
objective, maintain price stability?
This objective is implemented by the Bank of Lithuania by
choosing the anchor currency and maintaining a fixed exchange rate of the litas
against that currency. The anchor currency should be reliable and widely used in
the countries towards which the economy of Lithuania is mostly oriented. The
anchor currency of the litas as of 2 February 2002 is the euro. A fixed exchange
rate in a small and open economy, such as Lithuania, helps to achieve price
stability over time, which creates favourable conditions for long-term economic
growth.
Who owns the Bank of Lithuania?
The Bank of Lithuania is owned by the Lithuanian state.
Is the Bank of Lithuania a Governmental division?
No. The Bank of Lithuania is the central bank, independent of
the Government or other Lithuanian public institutions.
Can members of the general public open accounts at the
Bank of Lithuania and hold deposits?
No. The Bank of Lithuania is the central bank, not a
commercial bank. Therefore, it does not open accounts, accept deposits or
provide other services that are provided only by commercial banks.
Can I visit the Museum of the Bank of Lithuania?
The Museum of the Bank of Lithuania is located at 2/8
Totoriu Street in Vilnius. The Museum is open for visitors free of charge
Wednesdays and Thursdays, from 9 to 12 a.m. and from 1 to 2.30 p.m. Inquiries by
telephone: (370 5) 268 03 33, 268 03 34.
ATTENTION: THE MUSEUM IS NOT OPEN TEMPORARILY AND NOT AVIALABLE FOR EXCURSIONS DUE TO ITS RENOVATION AND MOVE TO ANOTHER PLACE.
Can the information published in the Bank of Lithuania
publications and on the internet site be used?
Yes. The information published by the Bank of Lithuania can
be used; a reference to the Bank of Lithuania as the source of information
should be included.
When is the Bank of Lithuania closed?
The Bank of Lithuania is closed on Saturdays and Sundays and these days of public holidays and non-working days in 2010:
1 January – New Year’s Day;
15 February – non-working day;
16 February – the Day of the Restoration of the Lithuanian State;
11 March – the Day of the Restoration of Lithuanian Independence;
12 March – non-working day;
4, 5 April – Easter;
1 May – International Labour Day;
2 May – Mother’s Day;
6 June – Father‘s Day;
24 June - Jonines (St. John's day);
25 June – non-working day;
5 July – non-working day;
6 July – the Day of the State (Crowning of King Mindaugas);
15 August – Zoline (Feast of the Assumption);
1 November – All Saints’ Day;
25, 26 December – Christmas;
Working days on Saturdays in 2010:
20 February, 20 March, 19 June, 10 July.
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Currency
Which currency issues have been withdrawn from
circulation and where can such currency be exchanged?
By now, 10, 20, 50, and 100 litas denomination banknotes and
1, 2 and 5 litas denomination coins of 1991 issue have been withdrawn from
circulation. These currency units can be exchanged free of charge at the cash
offices of the Bank of Lithuania in Vilnius (151 Zirmunu St), Kaunas (25
Maironio St) and Klaipeda (16 Naujojo uosto St).
Are payments and settlements possible in heavily soiled,
torn or otherwise damaged currency units?
Yes. Such currency is acceptable if:
- the remaining area is more than ¾ of the banknote with one
serial and one number marking;
- the coins are deformed or otherwise damaged to the extent
that the emblem of the Republic of Lithuania and the denomination numeral are
still recognisable.
What banknotes are not acceptable for payments and settlements?
Banknotes are not acceptable for payments and settlements if:
- the remaining area is less than ¾ but more than ½ of the banknote with
one serial and one number marking;
- at least ½ of the area of the watermark and one serial and one number
marking remain;
- the remaining area of the banknote is less than ½ of the banknote with
both serial and one number markings and the watermark.
Where can worn-out or damaged currency units be exchanged?
Worn-out or damaged currency units can be exchanged free of
charge at the cash offices of the Bank of Lithuania in Vilnius (151 Zirmunu St),
Kaunas (25 Maironio St), Klaipeda (16 Naujojo uosto St) and in commercial banks.
How can I recognise a real litas banknote?
Litas banknotes are well protected with modern security
measures. To make sure whether the banknote is real, look for the main banknote
security features.
In cases of doubt, currency units may be presented to the
Bank of Lithuania for expert examination.
Does the Bank of Lithuania exchange foreign currencies?
No. Foreign currencies can be exchanged in commercial banks.
How can the images of Lithuanian banknotes and coins be used for promotional, educational and other purposes?
In order to ensure that real banknotes and coins are easily distinguishable and to avoid any damage to the image of the Lithuanian currency and the Bank of Lithuania, banknotes can only be used in reproductions where the focus is not on the banknotes themselves; they can be used on one-sided copies whose size is at least 125 per cent or at most 75 per cent of the real length and width of a respective banknote, and on double-sided copies whose size is at least 200 per cent or at most 50 per cent of the real length and width of a respective banknote; images of coins can be used in flat-form reproductions on any material with the exception of metals. For further information see Resolution on the use of images of banknotes and coins of the Republic of Lithuania.
For inquiries please contact Mr. Algimantas Sodeika, Head of the Currency Examination Division, Cash Department, Bank of Lithuania, tel. +370 5 268 09 13, e-mail asodeika@lb.lt.
Who designed the present Lithuanian currency?
The currency in circulation at present was designed by
several authors.
1, 2, 5, 10, 20 and 500
litas banknotes were designed by the artist Giedrius Jonaitis, the 50
litas banknote by Giedrius Jonaitis and Rimvydas Bartkus, 100 and 200
litas banknotes by Rytis Valantinas.
1 litas coin, 1 litas commemorative coin marking the
10th anniversary of the Baltic Way, 2 and 5 litas
coins and 10, 20 and 50 centas coins were designed by the
sculptor Antanas Zukauskas, 1 litas commemorative circulation coin to mark
the 75th anniversary of the Bank of Lithuania was designed by Rimantas
Eidejus, and 1, 2 and 5 centas coins by Petras Garska.
Where and how can I purchase commemorative coins?
Commemorative coins issued by the Bank of Lithuania can be
purchased at the cash offices of the Bank of Lithuania
in Vilnius (151 Zirmunu St) (opening hours Mon to Thurs 9 a.m. to 12 a.m., 12.45 p.m. to 3 p.m., Fri 9
a.m. to 12 a.m., 12.45 p.m. to 2.00 p.m.;
Kaunas (25 Maironio St) (opening hours
Mon to Thurs 9.00 a.m. to 12 a.m., 12.45 p.m. to 3.00 p.m., Fri 9.00 a.m. to 12
a.m., 12.45 p.m. to 2.00 p.m.;
Klaipeda (16 Naujoji uosto St) (opening hours Mon
to Thurs 9 a.m. to 12 a.m., 12.45 p.m. to 2.30 p.m., Fri 9 a.m. to 12 a.m.,
12.45 p.m. to 1.30 p.m.).
Coins can also be ordered by completing and sending
the order form. Telephone for inquiries is (370 5) 268 03 15.
What is the term for the distribution of
commemorative coins?
The term for the distribution of each commemorative coin is 5
years. Six months before the end of the term of distribution the Bank of
Lithuania releases public information about the forthcoming termination of the
distribution.
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Credit Institutions
What is supervision of credit institutions and who
performs it?
Supervision of credit institutions includes accumulation and
analysis of information, necessary for supervision, from credit institutions in
the form of statements, assessment of the operations and financial standing of
credit institutions on the basis of that information, taking into account the
prudential and other requirements set in the legislation, and inspection of
credit institution operations. The latter aims to verify the correctness of the
statements presented to the Bank of Lithuania, assessment of the effectiveness
of credit institution operations and financial standing (capital, asset quality,
profitability), management of assets and liabilities and governance of credit
institutions; application of economic and other enforcement measures provided in
the legislation with regard to those credit institutions that fail to comply
with statutory requirements in relation to safe and reliable operations.
The supervision of credit institutions is conducted by the
Bank of Lithuania.
What is the difference between a bank’s representative
office and a branch?
A representative office of a bank is a subdivision that does
not perform banking operations or engages in other commercial and economic
activities. A branch, on the other hand, is a subdivision that operates under
the name of the bank and is authorised by the bank to perform at least one
banking operation. The bank is liable for the transactions and operations of the
branch.
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Litas Peg to the Euro
When was the litas pegged to the euro?
The litas was pegged to the euro on 2 February 2002 at a
fixed exchange rate (3,4528 litas per 1 Euro).
Will the litas remain the national currency after
pegging it to the euro?
Yes. After the litas was pegged to the euro, it remains the
national currency.
How was the official exchange rate of the litas
against the euro established?
The official fixed exchange rate of the litas against the
euro, effective as of 2 February 2002, was set as follows: the US dollar and
euro market exchange rate as announced by the European Central Bank on 1
February 2002 was multiplied by 4.
The US dollar and euro exchange rate is announced by the
European Central Bank with four digits following the decimal point; therefore,
the official litas exchange rate against the euro also has four digits following
the decimal point.
Why should the litas be pegged to the euro?
The Lithuanian economy is becoming continuously more and more
integrated with the economies of the European Union Member States and candidate
countries. With the development of the relevant foreign trade and investment
structure, it is becoming more important to reduce the movements of the litas
exchange rate against the currencies of the main trading partners. In the
context of economic and political integration, the peg of the litas to the euro
is a logical step in promoting further co-operation with the European Union. The
system of the litas peg to the euro will make it possible to join the Economic
and Monetary Union and adopt the euro in the future.
Will the litas remain stable after pegging it to the
euro?
Yes. The fact that the litas was pegged to the US dollar in
1994 allowed to ensure its stability against the US dollar. The litas has been
pegged to the euro at a fixed exchange rate as well, and will be stable in
relation to the euro.
Do Lithuanian commercial banks exchange the litas
into the euro and at what exchange rate?
Since 2 February 2002 litas exchange into the euro and vice
versa has been done on the basis of the official exchange rate of the litas
against the euro (3.4528 litas for 1 euro) set by the Bank of Lithuania without
any restrictions, with commercial bank charges limited by the Bank of Lithuania
for cash (1 per cent of the exchanged amount) and non-cash (0.25 per cent)
foreign exchange operations. The litas is exchanged into the US dollar and other
foreign currencies at the market exchange rate.
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Economic and Monetary Union
What is the Economic and Monetary Union?
The Economic and Monetary Union (EMU) is the process of co-ordinating
the economic and monetary policies of the European Union Member States whose
ultimate goal is the introduction of the common currency. The EMU has gone
through three stages. During stage one of the EMU (from 1 July 1990 to 31
December 1993) the remaining restrictions on the free movement of capital
between EU countries were removed. During the second stage of the EMU (from 1
January1994 to 31 December 1998) the European Monetary Institute, the
predecessor of the European Central Bank, was established. The third stage began
on 1 January 1999 with the introduction of the common currency, the euro.
What is the European System of Central Banks?
The European System of Central Bank (ESCB) consists of the
European Central Bank and the national central banks of the EU Member States.
The primary objective of the ESCB is to maintain price stability. The key tasks
of the ESCB are to establish and implement the common monetary policy, perform
foreign exchange operations, hold and manage international reserves of the
Member States and ensure smooth and reliable functioning of the payment system,
as well as co-operate with the relevant public institutions in performing
reliable supervision of credit institutions and ensuring the stability of the
financial system.
What is the European Central Bank?
The European Central Bank is the institution responsible for
the implementation of the common monetary policy in the euro area. The primary
objective of the ECB is to maintain price stability. The European Central Bank
and the national central banks of the 25 EU Member States make up the European
System of Central Banks. The head office of the European Central Bank is in
Frankfurt am Main in Germany.
