Reinoldijus Sarkinas introduced Lithuania’s preparation for participation in the euro area in Warsaw

The Chairman of the Board of the central bank of the Republic of Lithuania reviewed the experience of our country in the Exchange Rate Mechanism II (ERM II), which is one of the required steps for the adoption of the single currency of the European Union, the euro.

Lithuania joined ERM II in 28 June 2004.

“More than two years of our involvement in ERM II have supported the credibility of the litas peg to the euro and promoted economic convergence with the euro area. It also confirmed our determination to join the euro area as soon as possible“, - said Chairman of the Board of the Bank of Lithuania.

Mr. Reinoldijus Sarkinas pointed out that Lithuania, a country with a small, flexible and open economy, characterised by progressive integration of labour and capital markets and growing trade with euro area, is extremely well positioned to benefit from the single currency area.

“As euro area memberships is still not an option, participation in ERM II with the unilateral commitment to maintain the exchange rate at the central parity remains the second best solution, and we stay committed to maintaining such an arrangement until euro adoption,“ - said Mr. Reinoldijus Sarkinas, Chairman of the Board of the Bank of Lithuania.

Opinions on the preparation for the adoption of the euro were exchanged in Warsaw by central bank governors from the Eastern and Central European and the Balkan countries.

The seminar was organised in honour of Mr. Leszek Balcerowicz, President of the National Bank of Poland, finishing its term of office. Mr. Leszek Balcerowicz has been the governor of the National Bank of Poland since 2001. Mr. Leszek Balcerowicz had earlier visited the Bank of Lithuania.